MBC Statement on the 2025 National Budget

28 December 2024 – The Makati Business Club (MBC) calls for a more transparent and accountable process in finalizing the General Appropriations Act, known as the National Budget, particularly in the actions and discussions of the bicameral committee.

MBC commends the initiative of President Ferdinand Marcos Jr. in scrutinizing the bicameral-approved 2025 budget before its final passage.

We are alarmed by some of the adjustments made by the bicameral committee to the 2025 General Appropriations Act (GAA):

• In the bicameral approved version of the 2025 GAA, the Department of Public Works and Highways (DPWH) was given a Php 1.1 trillion budget, higher than the Department of Education which will be receiving Php 737 billion. This is equivalent to a net increase of almost Php 289 billion. Putting the DPWH budget higher than DEPED’s,  may violate the constitutional rule which mandates that the highest budgetary priority should be for education. ¹ 
• Congress received a budget increase of Php 19 billion. There is no sufficient explanation on the need and/or justification for this budgetary adjustment.
• Neither is there any explanation or justification for the Php 26 billion allotment for the Ayuda Para sa Kapos sa Kita Program (AKAP), apparently a financial assistance subsidy to “near-poor” families. There is no information on how this will be implemented, and conditions required for receiving the assistance. We note that the Senate has also previously questioned the funds for the program.
• While funds are allotted for assistance to the poor, it is not explained why the 2025 GAA removed the Php 74.43 billion subsidy for the Philippine Health Insurance Corporation (PhilHealth), a key agency, being the state health insurer.

According to the March 2024 Ulat ng Bayan Survey by Pulse Asia, the top three concerns of Filipinos are:

(1) Controlling inflation
(2) Increasing pay of workers
(3) Fighting graft and corruption in the government.

These are clear indicators of what should be the government’s priority. Therefore, the 2025 budget should focus on addressing supply-side inflation, improving infrastructure, addressing workforce skills gap, and driving government efficiency and transparency to attract more job-creating investments.

MBC believes that the National Budget should be designed to address the concerns and needs of the Filipino people. Thus, MBC calls for a more transparent and needs-aligned corrective actions to the 2025 budget. (END)

¹ https://newsinfo.inquirer.net/2018263/sen-marcos-to-palace-cut-p188b-from-dpwh-budget-to-make-gaa-lawfu