DBM submits PHP 6.352-T national budget to House

The Department of Budget and Management (DBM) on Monday submitted to the House of Representatives its proposed PHP 6.352-trillion national budget for 2025, which increases allocations for education by less than 1% and for defense by 6.4%, while more than doubling the budget for transportation.

However, the DBM slashed the proposed budgets for agriculture, health, and social welfare for next year.

The proposed national budget is equivalent to 22.1% of gross domestic product, and 10.1% higher than the PHP 5.768-trillion budget this year.

“Education remains the top priority with PHP 977.6 billion, equivalent to 15.4% of the budget, aligned with UNESCO’s (United Nations Educational, Scientific and Cultural Organization) education 2030 framework for action,” Budget Secretary Amenah F. Pangandaman said during turnover ceremonies at the House.

Next year’s proposed budget for the education sector inched up by 0.9% to PHP 977.6 billion from PHP 968.9 billion this year, according to a summary from the Budget department. This covers the Education department, Commission on Higher Education, Technical Education and Skills Development Authority and state universities.

However, education’s share in the 2025 budget fell to 15.4%, compared with 16.8% this year.

The allotted budget for the education sector is not on par with the 10% increase in the proposed 2025 budget and the country’s economic growth, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The PHP 977.6 billion for education barely scratches the surface of the sector’s needs, especially considering the learning crisis exacerbated by the pandemic,” Party-list Rep. France L. Castro told BusinessWorld in a Viber message.

The government should ensure ample funding for more teaching positions to improve education quality, IBON Foundation Executive Director Jose Enrique A. Africa told BusinessWorld.

“The most glaring and most fundamental flaw is that the number of teaching positions isn’t being increased, which means that those on the frontlines of teaching will be as overtasked and overburdened as ever,” he said in a Viber Message.

The Department of Public Works and Highways (DPWH) saw its budget fall by 9% to PHP 900 billion. Of this, PHP 226.7 billion will go to flood management projects, while PHP 140.9 billion will be allotted for road network development.

“The ‘Build Better More’ infrastructure program, through the Department of Public Works and Highways, will be allocated with PHP 900 billion or 14.2% of the proposed budget to finance various public infrastructure [projects],” Ms. Pangandaman said.

In the aftermath of the massive floods caused by Super Typhoon Carina last week, Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said Congress would have to tweak the infrastructure budget, particularly for proposed flood management projects.

“Expert calls for more upland intervention such as dams might not have been reflected as yet in the current budget,” he said in a Viber message.

On the other hand, next year’s budget for the Department of Transportation (DoTr) more than doubled to PHP 180.9 billion from this year’s PHP 73.9 billion.

The increase is due to the need to “develop and modernize… the country’s infrastructure,” according to Ms. Pangandaman.

The DoTr budget would fund key connectivity infrastructure such as the North-South Commuter Railway System and the first phase of the Metro Manila Subway project, she added.

“Metro Manila Subway project Phase 1 is [allotted] PHP 39.3 billion… while the North-South Commuter Railway Commuter System is [allocated] with almost PHP 64 billion,” Ms. Pangandaman told reporters after the turnover ceremony.

Meanwhile, the Defense budget will increase by 6.4% to PHP 256.1 billion next year amid growing tensions with China over contested waters.

The Philippine Army, Air Force, and Navy will collectively receive PHP 204.4 billion under the proposed budget, while PHP 50 billion will go to the Armed Forces’ modernization efforts, according to the Budget department’s summary.

The increase in defense spending due to “escalating conflicts” with China is acceptable and shows the government is consistent in supporting the country’s efforts to modernize its military, Chester B. Cabalza, founding president of Manila-based International Development and Security Cooperation, told BusinessWorld.

“The AFP (Armed Forces of the Philippines) should emphasize wiser defense expenditure and effective procurement process to accelerate the frugal budget of the government,” he said in a Facebook Messenger chat.

Rocio Salle Gatdula, a defense economist at the University of Asia and the Pacific, said the increased support for the military would help ensure it can counter China’s military capabilities.

“The Philippines needs to continue investing in the modernization of its armed forces. Additionally, it is important to maintain a thorough understanding of China’s weaponry to ensure the acquisition of appropriate defense equipment,” she said via Messenger chat.

For the agriculture sector, the government is allotting PHP 211.3 billion, 4.7% less than this year’s PHP 221.7-billion funding. The budget will be used to fund the country’s agriculture modernization efforts and provide cash aid to farmers and fisherfolk.

Of the amount proposed for the agriculture sector, PHP 24.6 billion will go to irrigation services, PHP 10 billion for the rice fund under a law that liberalized the rice industry, and PHP 2.8 billion for the agricultural credit program, according to the DBM’s summary.

Next year’s funding for the Department of Social Welfare and Development (DSWD) stood at PHP 230.1 billion, which is 7.6% lower than PHP 248.1 billion in 2024.  It will fund the Pantawid Pamilyang Pilipino Program and social pension for indigent senior citizens, said Ms. Pangandaman.

The health sector, comprising the Health department and Philippine Health Insurance Corp., will receive PHP 297.6 billion for next year’s proposed budget, 3.4% less than PHP 308.3 billion this year. – Kenneth Christiane L. Basilio