Philippine President Signs 2025 Budget into Law

MANILA (Reuters) – Philippine President Ferdinand Marcos Jr. signed the 2025 budget into law on Monday, announcing a planned 10% increase in government spending to a record 6.33 trillion pesos ($109.2 billion) aimed at supporting economic growth and reducing poverty.

The spending surpasses the earlier projection of 6.18 trillion pesos made this month, with revenue expected at 4.64 trillion pesos and a budget deficit of 5.3% of GDP. "It is designed not just to address our present needs but to sustain growth and uplift the lives of generations yet to come," Marcos said following the ceremonial signing.

The education sector receives the largest allocation for 2025, amounting to 1.053 trillion pesos, followed closely by the public works ministry with 1.034 trillion pesos, as stated by Budget Minister Amenah Pangandaman in a press briefing.

Pangandaman also mentioned that 35 billion pesos were set aside for the military's modernization program, which is less than the initially proposed 50 billion pesos.

Budget advocates have raised concerns about reductions in the education budget and the elimination of a subsidy for the government health insurance program, among other cuts.

Marcos had postponed the signing by over a week to review the finalized spending plan approved by Congress. He vetoed proposed expenditures exceeding 194 billion pesos ($3.35 billion).

Historically, government spending contributes about one-fifth of the country’s economic growth, with a growth target of 6.0% to 8.0% for 2025.

($1 = 57.908 Philippine pesos)