Philippine President Ferdinand Marcos Jr. has officially signed the 2025 national budget into law on December 30, 2024, totaling 6.33 trillion pesos (approximately US$109.2 billion). This budget marks a 10% increase from the previous year and aims to support economic growth projected at 6.0% to 8.0% for 2025 [51807164].
The education sector receives the largest allocation, with 1.053 trillion pesos designated for educational initiatives, followed closely by public works, which is allocated 1.034 trillion pesos. However, the budget has faced criticism for cuts in education and health subsidies, raising concerns about the impact on vulnerable populations [51807164].
Additionally, the budget includes 35 billion pesos for military modernization, a reduction from the originally proposed 50 billion pesos. Advocates for social services have expressed disappointment over these cuts, emphasizing the need for increased funding in education and health sectors to support the country's most disadvantaged communities [51807164].
This budget comes in the wake of significant public outrage earlier in December 2024, when lawmakers proposed cuts to essential social services, including a reduction of 361 billion pesos from social protection and medical services. This led to protests and calls for a reevaluation of the budget priorities [56a6a1b1].
Despite the criticisms, the Marcos administration maintains that the budget is designed to stimulate economic growth and address the needs of the nation. The government spending is expected to contribute approximately 20% to the economic growth targets set for the upcoming year [51807164].