Finance Secretary Ralph G. Recto has underscored that the PHP 6.326 trillion national budget for 2025 is the government’s most powerful tool to deliver the biggest economic benefits to Filipinos, assuring the Department of Finance’s (DOF) strong commitment to work doubly hard to mobilize resources efficiently to fund it.

Signed into law on December 30, 2024, the PHP 6.326 trillion General Appropriations Act (GAA) for 2025 is 9.7% higher than the previous year. This is equivalent to 22.0% of 2025’s projected Gross Domestic Product (GDP).

“This budget reflects our collective commitment to transforming economic gains into meaningful outcomes for every Filipino. It is designed not just to address our present needs, but to sustain growth and uplift the lives of generations that are yet to come,” President Ferdinand R. Marcos, Jr. said in his speech.

With the 2025 theme “Agenda for Prosperity: Fulfilling the Needs and Aspirations of the Filipino People,” the spending priorities in the national budget are anchored on the three pillars of the Philippine Development Plan 2023-2028: Develop and Protect the Capabilities of Individuals and Families; Transform Production Sectors to Generate More Quality Jobs and Competitive Products; and Create an Enabling Environment.

The budget also scaled up sustainable and green investments aligned with the National Climate Change Action Plan 2011-2028, ensuring a national budget that is growth-enhancing, disaster-responsive, and climate-resilient.

After an exhaustive and thorough review, the President emphasized that the Executive Branch directly vetoed over PHP 194 billion worth of line items that were not consistent with programmed priorities.

Conditional implementation on certain items is also pursued to ensure that the people’s funds are utilized in accordance with their authorized purposes.

“Titiyakin namin na mananatiling prayoridad ang Social Services, kasama na po ang Edukasyon, ayon sa mandato ng ating Saligang Batas, pati na rin ang Kalusugan. Sisikapin din po natin ang patuloy na pagpapatupad ng ating Economic Services, kasama ang imprastraktura at agrikultura, upang mapalakas pa ang ating ekonomiya at malabanan ang kahirapan na dulot ng pagtaas ng presyo ng bilihin at kalamidad,” the President stressed.

Recognizing the herculean task of mobilizing resources to fund the projects and programs itemized on the 2025 GAA, Secretary Recto reassured the public that the DOF will ensure that the country has enough funds to meet its needs and that every centavo will be spent efficiently on programs and projects that will greatly benefit the people.

“Makakasiguro po ang taumbayan na kami sa Department of Finance, lalo pa naming pag-bubutihin ang aming trabaho para mapondohan ang mga proyekto at programa sa ilalim ng ating national budget,” Secretary Recto said in his remarks during the press conference following the ceremonial signing of the 2025 GAA.

The Finance Chief explained that of the PHP 6.326 trillion national budget for next year, only PHP 4.64 trillion is supportable by revenues. This translates to daily government expenditures of PHP 17.33 billion, with the Department of Finance bearing the responsibility of generating PHP 12.72 billion in daily revenues.

“Kaya naman, sa laki po ng aming responsibilidad, bente kwatro oras din magtatrabaho ang DOF para matugunan ang ating pangangailangan. At titiyakin namin na ang bawat sentimo ay mapupunta sa tamang proyekto at programa para sa bayan,” Secretary Recto said.

He emphasized that the DOF will strive to not just meet but exceed its revenue targets to generate more resources—just as the country’s strong fiscal performance this year has demonstrated.

Total revenue collection for 2024 is expected to reach PHP 4.42 trillion, surpassing the full-year target of PHP 4.27 trillion. As a percentage of GDP, the emerging revenues will climb to 16.7%, the highest in the last 27 years.

Emerging non-tax revenues for 2024 are expected to reach PHP 606.6 billion—the highest ever recorded.

“These are all because of the hard work and contribution of the Bureau of Internal Revenue, the Bureau of Customs, the Bureau of the Treasury, our Privatization team, and our GOCCs,” he said.

In sustaining this momentum, the Finance Chief stressed that the government will continue to adhere to its Medium Term Fiscal Program that reduces our deficit and debt gradually in a realistic manner; while creating more jobs, increasing our people’s incomes, and decreasing poverty in the process.