Finance Secretary Ralph G. Recto has thanked the House of Representatives’ Committee on Appropriations panel for endorsing the Department of Finance’s (DOF) PHP 33.75-billion budget for fiscal year 2025 which prioritizes digitalization for efficient tax administration and better public service.

“[O]ur proposed budget every year is always a faithful reflection of our strategic priorities under the Bagong Pilipinas brand of governance. [They] are part and parcel of a larger effort to improve tax administration efficiency, deliver more responsive public service delivery, and provide economic prosperity for the Filipino people,” Secretary Recto said in a previous statement during the DOF budget committee briefings in Congress.

Sultan Kudarat Representative and Committee on Appropriations Vice Chair Horacio Suansing sponsored the DOF budget before the House plenary on September 16, 2024.

In his sponsorship speech, Suansing manifested his support to increase the budget for the Bureau of Internal Revenue (BIR), the Bureau of Customs (BOC), the Bureau of Local Government Finance (BLGF), and the Philippine Tax Academy (PTA).

In addition, Representative Suansing also called for the replenishment of the People’s Survival Fund (PSF) to support numerous climate adaptation projects of local communities.

“In view of this chamber’s pursuit to undertake productive investments, particularly in our local institutions to strengthen our macroeconomic fundamentals and thereby protect the country’s long-term growth and development prospects, I appeal to my colleagues in Congress to do the same,” he said.

The DOF’s proposed budget for 2025 of PHP 33.75 billion is 20.8% higher than the 2024 General Appropriations Act (GAA) level but represents only 0.5% of the government’s total proposed 2025 national budget of PHP 6.352 trillion.

Under this, the DOF’s New General Appropriations constitute the largest portion, amounting to PHP 29.0 billion to support the DOF’s core operations and priority programs.

To prioritize workforce development and the digitalization of its attached agencies, 41.4% of the DOF’s proposed budget is allocated to Personnel Services, 37.9% to Maintenance and Other Operating Expenses (MOOE), and 20.6% to Capital Outlays.

Specifically, the BIR, the BOC, and the Insurance Commission (IC) lead the charge in digitalization with a combined amount of PHP 4.2 billion, while other agencies are allotted around PHP 600 million.

Investments in digitalization will significantly enhance taxpayer experience, streamline trade processes, and improve fiscal transparency.

With the heaviest task to collect PHP 3.23 trillion in revenues next year, the BIR will receive the largest share of the budget, totaling PHP 17.68 billion (54.4% share).

“Kung tutuusin, sulit na sulit po ang budget na ito ng BIR. Ang 17.68 billion pesos na budget ay koleksyon lang nila sa loob ng dalawang araw,” Secretary Recto said.

Meanwhile, the BOC has a proposed budget of PHP 5.66 billion (17.4% share), a meager amount compared to its target collection of PHP 1.06 trillion next year.

“Ang halaga nito ay koleksyon lang nila sa loob ng kwarenta’y otsong oras,” he said.

The Bureau of the Treasury (BTr) has a budget allocation of PHP 6.46 billion (19.9% share) compared to its heavy responsibility of bridging the PHP 1.54 trillion deficit in 2025.

On the other hand, the IC’s proposed budget of PHP 1.0 billion will be utilized to increase investments in ICT programs and projects, as well as upgrade and modernize its Data Center.

Lower by 4% than the 2024 GAA level, the DOF-Office of the Secretary’s proposed budget of PHP 966.97 million will support its Financial Sustainability and Revenue Strengthening Program, Asset Liability Management Program, the Philippines’ hosting of the Double Taxation Agreement Negotiations/ Renegotiations, as well as its digitalization and modernization initiatives.

The BLGF’s proposed budget of PHP 433.66 million, which is 28.9% higher than the 2024 level, will cover the procurement of 12 motor vehicles, various construction projects, and the replacement of office equipment, among others.

This will also support the government’s share of the Asian Development Bank (ADB)-funded Local Governance Reform Project (LGRP).

The National Tax Research Center’s (NTRC) proposed budget of PHP 144.11 million is an 11.2% decrease from the previous year. This will support the enhancement and upgrading of its ICT infrastructure, including the improvement of the Fiscal Incentives Registration and Monitoring System and the NTRC website.

In an effort to maximize non-tax revenue sources, the Privatization and Management Office’s (PMO) proposed budget for 2025 will increase by 8.7% or PHP 111.06 million to allow the agency to effectively oversee the privatization of government assets.

Finally, the Central Board of Assessment Appeals (CBAA) submitted a proposed budget of PHP 18.05 million to boost its capacity to resolve assessment disputes and ensure equitable resolution of property valuation and assessment cases. This amount is 2.49% higher than the previous year.