DBCC proposes a P6.35 trillion budget for 2025

THE Development Budget Coordination Committee (DBCC) is proposing a national budget of P6.352 trillion for 2025, a 10% increase from this year’s P5.768 trillion.

The National Government’s (NG) spending plan for 2025 corresponds to 22% of gross domestic product.

“We will present it to the full cabinet on July 2 and to Congress on July 29. This is a week after the State of the Nation Address (July 22),” Budget Secretary Amenah F. Pangandaman said in a media briefing.

In April, the DBCC had projected a P6.2 trillion budget for 2025.

The DBM said the government needs a bigger budget to finance the May by-elections, noting that the allowances for election volunteers.

The education allowance was also increased from P5,000 to P10,000 under the recently signed Republic Act No. 11997 or the Kabalikat sa Pagtuturo Act, hence the need to increase expenditures for next year, Ms. Pangandaman said.

Also included in next year’s budget is the expansion of the Pantawid Pamilyang Pilipino Program (4Ps) with an initial grant of 1,000 days for beneficiaries who are pregnant, lactating and have two-year-old children.

Ms Pangandaman attributes the budget increase to higher National Tax Allotment (NTA) collections post-pandemic.

NTAs constitute the 40% share of NG from three years ago, meaning next year’s collections are based on 2022 government revenue.

Local government units are expected to receive P1.034 trillion in NTAs next year, the DBM said earlier.

Sectors expected to receive higher allocations include education, healthcare, social protection, agriculture, infrastructure, digitalization and climate-related projects, the budget chief said.

“While evaluating the agencies’ budget proposals for the fiscal year 2025, DBM considered several factors, such as the availability of fiscal space, readiness for implementation of programs and projects, the agencies’ absorptive capacity and alignment with expenditure directions,” the DBCC said in a separate article. rack.

Programs under the three-year Rolling Infrastructure Program, the Information Systems Strategic Plan and the Convergence Budgeting Program were also given budget priority, it added. ––BMDC