Philippine Association of State Universities and Colleges President Tirso A. Ronquillo; Professors, instructors, and faculty members of SUCs; ladies and gentlemen: Magandang hapon po sa inyong lahat.

It is an honor to be here with the brilliant minds shaping our nation’s greatest treasure.

As you all know, I have worn many hats throughout my career – from businessman, congressman, and senator, to now serving as your Finance Secretary.

But ever since, the same principle has held true to my heart: Education must be a top priority of the government. And it is the last expenditure upon which the Philippines should be willing to economize.

Because a country’s progress hinges on the quality of its human capital. Education dictates whether a nation prospers or remains poor.

For example, a college education has a high rate of return, even better than what banks and stocks can offer.

According to one study, returns on investing in a college education can yield around 15 percent. It is the best investment one can ever make.

The World Bank estimates a 17 percent increase in earnings for those with college degrees–the highest compared to those with primary and secondary education only.

Another study reveals that a college graduate’s chances of unemployment are 2.2 times lower compared to a high school graduate. His likelihood of securing a retirement plan through employment increases by 72 percent.

And it’s not just about money.

A college graduate also enjoys a longer life expectancy, living seven years more on average from age 25. His likelihood of being in good health is 44 percent greater.

A college diploma may not make one as rich as Elon Musk. But it is a tried-and-tested ticket out of poverty–towards a life of prosperity and health.

So imagine the effects this can have on the entire Philippine economy.

We now enjoy a demographic sweet spot, with a median age of only 25 years old. Having more workers with college diplomas could fuel a transformative surge in productivity, innovation, and economic growth–breaking the cycle of poverty in the country.

It would be easier for us to achieve an upper middle-income country status by 2025, become a trillion-dollar economy by 2033, and eventually be the 14th biggest economy in the world by 2075.

Seizing the opportunities offered by this demographic advantage requires enhancing our education, creating new jobs, and opening opportunities for all.

This is precisely why I championed, as principal author, the Universal Access to Quality Tertiary Education Act during my time as a legislator. And many of you were there during the debates.

It was my goal to ensure that every student who cannot make it to college on his own receives a helping hand from the government.

After all, building the country’s talent pool is not the responsibility of families alone. The government has to be proactive and give its share.

And now as Secretary of Finance, it is my duty to stretch every peso collected from our revenue efforts to fund the nation’s HEARTS. This stands for Health; Education; Roads and Infrastructure; Technology; and Security and Social Protection–with education holding the highest priority.

In 2024 alone, the Department of Finance needs to collect 11.7 billion pesos and borrow about 4 billion pesos a day to fund our average daily spending of 15.8 billion pesos. So far, we are on track to meet our targets.

The biggest chunk of our 5.767 trillion peso-national budget for the year goes to education with an allocation of 969 billion pesos. This is up by 8.2 percent from the previous year.

The amount covers the budget for DEPED, SUCs, CHED, TESDA, and other education-related institutions.

SUCs, in particular, had a double-digit increase in funding by 19.3 percent to 132.9 billion pesos in 2024. This includes a 21.7 billion peso allotment to guarantee free tertiary education to over 3.1 million students across the country.

And expect these numbers to continuously grow in the coming years as we further strengthen our intellectual capital.

Yet, we also recognize that true progress is more than academic achievement. We should equally prioritize social protection to ensure that our people are not just smart, but are healthy and thriving.

That is why we are spending roughly 440 billion pesos this year on social protection programs like ayudas.

These are cash assistance to the poor and vulnerable as well as livelihood, housing, and medical support that would benefit roughly half of the population.

All hands are also on deck in ensuring food security. We are sparing no effort to shield our people from high food prices by managing inflation and increasing investments in the agriculture sector.

Aside from intellectual infrastructure, we are investing heavily in physical infrastructure.

Infra projects will provide more stimulus to growth in the years ahead, creating the highest multiplier effect on the economy.

They not only enhance mobility but improve the lives of our people through the creation of more job and livelihood opportunities. And they bring better healthcare and social services closer to local and underserved communities.

Over the next four years, we will be spending an average of 5 to 6 percent on infrastructure investments annually. These include disaster-resilient school buildings, roads, bridges, railways, airports, and seaports all over the country.

For instance, our rail projects like the upcoming Metro Manila Subway and the LRT-1 Cavite Extension will dramatically help students within the metro and nearby provinces to travel seamlessly to university areas.

More importantly, we are committed to bridging not just the physical distances but also the digital divide from Luzon to Mindanao.

The Philippine Digital Infrastructure Project and the National Broadband Program are set to revolutionize our internet landscape. They will help lower costs and deliver faster internet speeds to even the most remote areas.

These projects will be the backbone of our efforts to accelerate AI development across the nation through our recently launched National Artificial Intelligence Strategy Roadmap 2.0. This will ensure that our students are fully prepared for an AI-driven future.

We have seen it in the news. SUCs top the list of the most sought-after schools among employers. Public universities must produce the finest AI-ready graduates for the new economy.

On the part of the DOF, we are utilizing fiscal policy as a tool to promote a regime that rewards AI, innovation, and the creation of new knowledge.

Through attractive fiscal and non-fiscal incentives, the CREATE MORE bill will help bring in more investments for human capital development, such as the establishment of knowledge, innovation, and science technology or K.I.S.T. parks in our SUCs.

I am particularly proud to highlight that Batangas State University–in my hometown–was the pioneer in launching the country’s first K.I.S.T. park. This milestone is one we aim to replicate across all SUC campuses nationwide through CREATE MORE.

Simultaneously, the government is vigorously improving the ease of doing business in the country to attract more foreign investments that will provide the training our students need to master both the soft and hard skills required to excel globally.

To complement these initiatives, I encourage PASUC to lead efforts in elevating the competitiveness of our state universities and colleges through the delivery of world-class education.

This begins with ensuring that we have the brightest minds to mentor our students and that available resources are used effectively and efficiently.

As hotspots of creativity and progress, our SUCs must also embrace constant modernization, innovation, and reinvention at every turn.

And one more thing, I encourage our SUCs to inspire our young people to bring their talents and training to the public service.

Government service may not be the most lucrative career option. But we need a whole new generation of Filipinos imbued with fresh perspectives, ideas, and energy to revolutionize our institutions of governance.

Rest assured, the DOF stands ready to support the PASUC every step of the way in nurturing a new generation of healthy, smart, and globally competitive Bagong Pilipino.

Maraming salamat po at mabuhay ang Bagong Pilipinas!