MANILA: Speaker Martin Romualdez on Monday said the proposed PHP6.352-trillion national budget for 2025 is the “best tool” to sustain economic growth and benefit all Filipinos.
At the start of deliberations, Romualdez said Congress would ensure that every peso in next year’s capital outlay is judiciously allocated and spent by prioritizing programs and initiatives that will contribute to national goals and the well-being of citizens.
“The budget is the best tool we have to ensure that our people, especially the poor, feel the tangible benefits of our economic achievements,” Romualdez said. “It is through the careful and strategic allocation of resources that we can ensure every citizen has a stake in the country’s development.”
He said by prioritizing programs that uplift the most vulnerable sectors and provide essential services, the budget ‘serves as a bridge, connecting our economic successes with the daily lives of our people.’
‘It is a testament to our commitment to inclusivity and equity, ensuring t
hat the progress we make as a nation is shared by all,’ Romualdez said.
Romualdez noted that the 2025 national budget aligns with the Marcos administration’s spending priorities that follow the three pillars of the Philippine Development Plan 2023-2028 — developing and protecting the capabilities of individuals and families; transforming production sectors to generate more quality jobs and competitive products; and creating an enabling environment through macroeconomic stability, bureaucratic efficiency and good governance, among other key strategies.
‘The national budget is a critical tool for steering a country’s development path. It not only determines how resources are allocated but also sets the policy direction for economic growth, social equity, and environmental sustainability,’ he said.
He said on top of the spending priority list is education with an allocation of PHP977.6 billion, followed by public works with PHP900 billion, health with PHP297.6 billion, interior and local government with PHP2
78.4 billion, defense with PHP256.1 billion, social welfare with PHP230.1 billion, agriculture with PHP211.3 billion, transportation with PHP180.9 billion, judiciary with PHP63.6 billion, and justice with PHP40.6 billion.
‘In the performance of our duty to allocate our financial resources, we bear the utmost responsibility to ensure that the budget proposals of every department and agency correspond with the welfare and advancement of the Filipino people and target their priorities and needs,’ Romualdez said.
Appropriations Committee chairperson Ako Bicol Party-list Rep. Elizaldy Co urged his colleagues to approve a budget that “not only meets the immediate needs of our constituents but also lays the foundation for long-term growth and prosperity consistent with our vision in Ambition 2040.”
“Our duty is to ensure that our nation’s financial resources are allocated effectively and responsibly to meet the needs and aspirations of our people,’ Co said.
He said the 2025 budget could help more Filipinos hurdl
e the poverty threshold, especially after government action that brought down rice tariff to 15 percent starting July 16 this year from 35 percent.
‘It (the budget) outlines government’s plan to stimulate economic growth, enhance social services, improve infrastructure and ensure sustainable development. In these challenging times, a well-crafted budget is essential for addressing our country’s pressing issues from economic recovery to social equity and food security,’ Co said.
On-track to achieve targets
Meanwhile, Department of Finance (DOF) Secretary Ralph Recto said the government is on track to achieving its targets under the refined Medium-Term Fiscal Program that gradually reduces deficit and debt, creates more jobs, increases income and reduces poverty.
Recto said the recalibrated program took into account ongoing external trends that heavily influence the global economy at present while still recovering from the pandemic, such as geopolitical tensions.
‘And under this, we have ensured that every
peso to be collected or borrowed will be stretched to deliver the biggest bang per buck for the Filipino people,’ he added.
To fund the budget for next year, Recto said the DOF scouted for more resources without inflicting new taxes or leaving debts to be paid by future generations.
He noted that the DOF hiked the government-owned and -controlled corporations’ dividend rates to 75 percent from 50 percent as among the major sources of non-tax revenues.
The Bureau of Internal Revenue and the Bureau of Customs, on the other hand, posted higher collection performances through digitalization, strict enforcement and plugging of tax leakages, especially from e-commerce.
Total revenue collection from January to June 2024 grew by 15.6 percent amounting to PHP2.15 trillion.
Tax collections increased by 10 percent to PHP1.84 trillion, while non-tax grew by 63.3 percent to PHP314.2 billion.
Expenditures also grew by 14.6 percent in the same period, reaching PHP2.76 trillion.
Recto reported that the fiscal deficit
has remained “very manageable” at PHP613.9 billion, way below the mid-year target.
Recto assured the House that the government is continuously managing the country’s debt according to the highest standards of fiscal discipline.
As of June, the gross financing stands at 61 percent of the full-year goal of PHP2.57 trillion.
Recto said there is no cause for concern regarding the Philippine government’s total outstanding debt because the size of the country’s economy is large enough to allow the government to generate the resources needed to meet its obligations.
He said the Bureau of the Treasury continues to employ prudent debt management strategies to ensure that borrowings remain manageable and sustainable.
He further cited that strict adherence to fiscal discipline and proactive debt management are among the major reasons why the Philippines has maintained its high credit rating status.
‘We are determined to stick to our Medium-Term Fiscal Program by exercising the highest level of fiscal prudence. Bec
ause doing so will also allow us to achieve a credit rating upgrade under this administration,’ Recto said.
He also assured the House that the government is making steady progress on its economic goals, as evidenced by its strong growth, decelerating inflation, vibrant labor market and growing middle class, achievement of all-time high gross national income per capita in 2023, and significant reduction of poverty incidence last year.
Budget Secretary Amenah Pangandaman expressed hope that the budget will be passed immediately so that the country will remain on track with its Agenda for Prosperity.
‘We have worked very hard to make our proposed National Expenditure Program align with our Philippine Development Plan, bearing in mind our need to stay on track with our Agenda for Prosperity, and our goals of fulfilling the needs and aspirations of the Filipino people under a Bagong Pilipinas,’ Pangandaman said.
Source: Philippines News Agency