Philippine President Ferdinand Marcos Jr. Signed 2025 Budget into Law
MANILA – Philippine President Ferdinand Marcos Jr. signed the 2025 budget into law on Monday, stating that the planned 10% increase in government spending to a record 6.33 trillion pesos ($109.2 billion) will support economic growth and reduce poverty.
The budget allocation is higher than the projection of 6.18 trillion pesos announced earlier this month. The education sector has the largest budget allocation, with 1.053 trillion pesos, followed by the public works ministry with 1.034 trillion pesos. The military’s modernization program has been earmarked with 35 billion pesos, lower than the original proposed amount of 50 billion pesos.
Budget advocates have expressed concern over reductions in the education budget and the removal of a subsidy for the government health insurance program, among other cuts. Marcos had delayed the signing of the budget by over a week, citing the need to review the final spending plan approved by Congress.
Government spending is expected to contribute around a fifth of the country’s economic growth, which is targeted at 6.0% to 8.0% in 2025. The budget law has been met with mixed reactions, with some hailing it as a step forward for the country’s economy and others expressing concern over the cuts to essential programs.