Finance Secretary Ralph G. Recto on Monday hailed the P6.326 trillion budget for 2025 as the government’s most potent tool to drive economic growth and deliver substantial benefits to Filipinos. Signed into law only today, the 2025 General Appropriations Act (GAA) marks a 9.7 percent increase from the previous year, representing 22 percent of the country’s projected GDP.
“This budget reflects our collective commitment to turning economic gains into meaningful outcomes for every Filipino,” said President Ferdinand R. Marcos Jr., underscoring the budget’s role in sustaining long-term growth and enhancing the lives of future generations.
This develops as President Marcos vetoed P194 billion worth of proposed spending considered inconsistent with government priorities even as the budget for public works was raised by 300 percent and that for social amelioration, dubbed the AKAP (Ayuda sa Kapos and Kita Program), kept to ensure that its provisional objectives remain consistent with the government’s strategic spending program.
The 2025 budget, Recto said, aligns with the Philippine Development Plan’s three key pillars: empowering individuals and families, transforming production sectors for quality jobs and competitive products, and creating an enabling environment for sustainable progress. Special emphasis is placed on green investments and climate resilience, reflecting the government’s commitment to environmental sustainability.
To ensure efficient resource allocation, the Executive Branch has vetoed over P194 billion in line items not aligned with national priorities. The budget also includes conditional implementation for certain expenditures, ensuring funds are used effectively.
Secretary Recto reassured the public that the Department of Finance (DOF) will work tirelessly to meet funding requirements for the ambitious projects and programs outlined in the 2025 GAA. He emphasized that P4.64 trillion of the budget will be supported by revenues, with the DOF responsible for generating P12.72 billion in daily revenue to fund government operations.
Recto also highlighted the strong fiscal performance of 2024, with total revenue collection expected to surpass P4.42 trillion, the highest in 27 years. This growth, driven by the Bureau of Internal Revenue, Bureau of Customs, and other agencies, supports the government’s goal to reduce the deficit and debt while creating more jobs and reducing poverty.
The 2025 budget is a significant step toward achieving a “prosperous” and resilient Philippine economy, with the DOF pledging to mobilize resources efficiently to ensure the success of government programs.
According to latest data, the budgetary shortfall this year widened sharply to P219.9 billion in November from only P93.3 billion last year.
Government spending surged 27 percent to P551.3 billion traced to higher capex for roads, defense, social safety nets, education and personnel services.
This developed even as revenue collection fell 0.6 percent during the period to only P338.3 billion traced to lower non-tax collection.
This resulted to an 11-month budget shortfall of P1.176 trillion from P1.111 trillion last year.
