To House Speaker Ferdinand Martin Romualdez;

Senior Deputy Speaker Aurelio “Dong” D. Gonzales Jr.;

Majority Leader Manuel Jose “Mannix” Dalipe;

Minority Leader Marcelino C. Libanan;

Secretary General Reginald S. Velasco;

House Committee on Appropriations Chairperson Elizaldy S. Co;

Honorable members of the 19th Congress, my fellow workers in government, and our media representatives:

Good day.

Assalamu alaikum wa Raḥmatullahi wa Barakatuh.

On behalf of President Ferdinand R. Marcos Jr., it is my honor and privilege to transmit to Congress—for its perusal, deliberation, and approval—the Fiscal Year (FY) 2025 National Expenditure Program (NEP).

Amounting to Php 6.352 trillion, the proposed national budget for next year is equivalent to 22.1 percent of GDP and 10.1 percent higher than this year’s budget of Php 5.768 trillion.

As stated by PBBM himself in his third State of the Nation Address, this budget “was crafted with utmost care, diligence, and meticulous attention.”

At the onset, let me share with you that we received budget proposals totaling Php 9.2 trillion. The Department of Budget and Management evaluated these proposals based on the implementation-readiness of programs and projects, agency absorptive capacity, and alignment with expenditure direction, among others.

With the theme, “Agenda for Prosperity: Fulfilling the Needs and Aspirations of the Filipino People,” the proposed national budget is anchored on the pillars of the Philippine Development Plan 2023-2028 and will continue ushering in economic and social transformation.

Bearing in mind inclusivity, the Social Services sector will receive the largest allocation of 33.4 percent or Php 2.12 trillion.

Towards sustainability, the Economic Services Sector will receive Php 1.85 trillion or 29.2 percent of the budget.

To develop and protect the capabilities of individuals and families—the first pillar of the PDP—the proposed budget will promote human and social development, reduce vulnerabilities, protect purchasing power, and increase income-earning abilities.

Education remains a top priority with Php 977.6 billion, equivalent to 15.4 percent of the budget, aligned with UNESCO’s Education 2030 Framework for Action.

The Department of Health will be allocated with Php 297.6 billion to continue the advanced implementation of the Universal Health Care Act while fully recovering and rebuilding from the pandemic.

Social Welfare and Development will get Php 230.1 billion to fund social protection programs including the Pantawid Pamilyang Pilipino Program and the Social Pension for Indigent Senior Citizens.

To increase income-earning ability, we have harmonized all livelihood and employment programs, with an allocation of Php 36.8 billion.

To transform our production sectors to generate more quality jobs and competitive products—the second pillar of the PDP—we will modernize agriculture and agribusiness, revitalize industry and promote trade and investments, reinvigorate services, and advance research and development. 

To develop our agricultural industry and achieve food security, the Department of Agriculture and the Department of Agrarian Reform will be given Php 211.3 billion to support our farmers and fisherfolk.

To promote trade and attract investments, the Department of Trade and Industry will receive Php 8.6 billion.

To drive innovation, the Department of Science and Technology will be allocated with Php 28.8 billion.

And to make the Philippines a tourism powerhouse, the Department of Tourism will receive Php 3.4 billion.

Finally, the third pillar of the PDP aims to foster an enabling environment through programs that ensure macroeconomic stability, infrastructure development, digitalization, national security, bureaucratic efficiency, public order and safety, justice, and climate and environment.

To this end, the Build-Better-More infrastructure program, through the Department of Public Works and Highways will be allocated Php 900.0 billion, or 14.2 percent of the proposed budget, to finance various public infrastructures. Meanwhile, Transportation will receive Php 180.9 billion, a boost of 144.8 percent from its 2024 level, to fund major rail, land, air, and sea transportation projects.

To combat graft and corruption, we will be allocating some Php 70.6 billion to rapidly digitalize our bureaucracy.

To uphold our sovereignty and territorial integrity, some Php 258.2 billion will be earmarked for the Defense Department.

The Interior and Local Government department, on the other hand, will receive Php 281.3 billion to fund the operations of the Philippine National Police, Bureau of Fire Protection, Bureau of Jail Management and Penology, and other agencies that maintain peace and order nationwide.

To ensure sustainability, Climate Change Expenditure Tagging will now reach Php 1.0 trillion to monitor the scope and distribution of the country’s climate action.

Finally, our local governments, including the Bangsamoro Autonomous Region in Muslim Mindanao, will continue to be supported with their share in the National Tax Allotment and Annual Block Grant, respectively.

These are just some of the key features of the proposed FY 2025 National Budget. We will present the specific programs, activities, and projects in an audio-visual presentation for everyone’s better appreciation.

In closing, allow me to echo the President’s call during his latest SONA: “We expect all agencies to ensure that every centavo allocated will be judiciously spent for our urgent priorities and socially impactful programs.”

Let us sustain the momentum and stay on track with our Agenda for Prosperity. Through this budget, we can achieve our target of a single-digit poverty level and an upper-middle-income economy. Together, let us fulfill the needs and aspirations of the Filipino people, to achieve a Bagong Pilipinas for our citizens and for the future generations.

Mabuhay ang mga Pilipino at Mabuhay ang Bagong Pilipinas.

Wabillahi Tawfiq Wal Hidaya, Wasalamu alaikum wa rahmatullahi wa Barakatuhu.

END

To UP Chancellor Atty. Edgardo Carlo L. Vistan II;

UP-NCPAG Dean Kristoffer B. Berse and UP-NCPAG Center for Policy and Executive Development Director Enrico L. Basilio;

My colleagues in the national government;

And to everyone joining us on this momentous occasion;

A pleasant afternoon. Assalamu alaikum wa Raḥmatullahi wa Barakatuh.

First, I express my utmost gratitude to the University of the Philippines National College of Public Administration and Governance (UP-NCPAG) for your invaluable support to the Public Financial Management Competency Program (PFMCP).

I’m happy that, with our renewed partnership, the PFMCP will now be implemented by very able and passionate individuals from both the academe and the government—a testament to our commitment to adopting a whole-of-society approach to enhancing bureaucratic efficiency.

While we come from different sectors and backgrounds, we are bound by a common purpose: to serve our nation strengthened by our knowledge and application of the PFM system in the country. I believe that with a better understanding of PFM, we can truly be aligned with UP’s new motto, “Honor, Excellence, Service.”

And with both DBM and UP NCPAG on board in this endeavor, I am confident that we can inculcate a culture of excellence that generates brilliant solutions and strategies to address emerging challenges in public administration. The practical insights and technical expertise of the top-caliber experts from our institutions will truly lead to a more effective delivery of PFMCP courses, guided by a robust curriculum that meets our evolving needs in  PFM.

Looking back, our partnership from 2018 to 2019 successfully capacitated 209 PFM practitioners from various government agencies through three Foundation Track classes.

Next year, thanks to the Center for Policy and Executive Development (CPED) of the UP-NCPAG, our partnership will be stronger than ever as we engage hundreds more on Budget Preparation and Execution, opening the gates for more PFM practitioners from various agencies to learn more about the fundamentals of PFM.

But, we are not stopping here. To attain our Agenda for Prosperity, we at the Department of Budget and Management recently expanded our PFMCP to capacitate budget officers not only from national government agencies but also from local government units. Through this program, local PFM practitioners and budget officers are equipped with the necessary competencies to better serve their respective localities.

Just last week, we visited Tagaytay City, where we capacitated over 600 local PFM practitioners from Cavite, Laguna, Batangas, Quezon, and Lucena City. This brings our total empowered local PFM practitioners to over 5,000 since the program started last year. And I am happy to share that, in the coming months, we plan to bring the PFMCP to at least 5 more regions.

Aside from capacity building, we also aim to fully digitalize our PFM systems by adopting the Integrated Financial Management Information System (IFMIS) across all government agencies. To jumpstart this initiative, we are reviving the Budget and Treasury Management System (BTMS), which will serve as the centralized database for all government financial operations.

Meanwhile, to harmonize PFM policies and processes across agencies, we also conducted a workshop series earlier this year dedicated to developing the Philippine Public Financial Management Reforms Roadmap 2024 to 2028. Through these planning workshops, we reviewed PFM reforms developed in the past years, identified gaps, potential challenges, and key learnings, and formulated key strategies for enhancing PFM over the medium term.

These are just some of the reforms we are doing to enhance bureaucratic efficiency and promote sound fiscal management.

Indeed, enhancing public administration is never easy. Change is never easy. But progress is not possible without it. That is why this collaboration is not only timely but essential. So once again I thank the UP NCPAG for renewing our partnership and for this opportunity for us to once again work together to shape our leaders—in this generation and the next—so that we may fulfill our vision of a Bagong Pilipinas where our government is truly sound, systematic, transparent, and accountable, serving in the true spirit of “Honor, Excellence, Service.”

Maraming salamat po. Mabuhay po tayong lahat!

Wabillahi Tawfiq Wal Hidaya, Wasalamu alaikum wa rahmatullahi wa Barakatuhu.

To Cavite Provincial Governor Juanito Victor C. Remulla;

Batangas Provincial Governor Hermilando I. Mandanas;

Our mayors present today and from the past three days, Mayor Reynaldo E. Rosilla Jr. of Buenavista, Quezon; Mayor Angelique E. Bosque of Polillo, Quezon; Mayor Jose D. Saavedra of Plaridel Quezon; Mayor Cinderella Valenton-Reyes of Agoncillo, Batangas; Mayor Eliseo R. Ruzol of General Nakar, Quezon; Mayor Ronald B. Cosico of Paete, Laguna; Mayor Rachel A. Ubana of Lopez, Quezon; Mayor Cesar V. Areza of Pagsanjan, Laguna; Mayor Eric B. Africa of Lipa City, Batangas, and  Mayor Patrick Ellis Z. Go of Siniloan, Laguna — maraming salamat po sa mainit na pagtanggap sa amin mula sa Department of Budget and Management (DBM);

To the Philippine League of Local Budget Officers (PHILLBO) CALABARZON Inc. President Dr. Rosarie C. de la Paz — thank you for being our incredible partner in making the PFMCP in Region IV-A happen;

To our very own DBM Regional Office IV-A, led by Director Nympha R. Manalastas and Assistant Director Jacqueline B. Ludovice whose support has been invaluable to the success of this event;

To our Public Financial Management (PFM) practitioners, and all our participants from Batangas, Cavite, Laguna, Quezon, Rizal and Lucena City.

Magandang Umaga po! Assalamu alaikum wa Raḥmatullahi wa Barakatuh.

First, allow me to share how happy I am to be here in abreathtaking City of Tagaytay!

Despite the chilly weather, it warms my heart to see an astounding number of participants eager to participate in this PFM Competency Program that we especially developed for our local PFM practitioners.

As you may know, we, at the Department of Budget and Management are persistently working hard to enhance our PFM system. That includes developing the capacities of our local PFM practitioners—because you are the front liners in delivering quality services to the people we have sworn to serve.

And I am proud to share that we have already empowered more than 4,200 local PFM practitioners, and counting to date, nationwide. This only shows that our growth and prosperity will never be truly inclusive without our local governments.  

In the past few days, our top-caliber resource persons and subject matter experts walked you through the seven (7) foundation courses on  Maintaining PFM Understanding, Principles of Internal Controls and Internal Audit, Relationship Management, Budget Preparation, Budget Authorization and Review, Budget Execution and Accountability, and Procurement. Ultimately, our goal in PFMCP is to promote good governance, financial accountability, and effective resource management in your respective localities.

We are also fortunate to have our Government Procurement Policy Board - Technical Support Office (GPBB-TSO) on board, especially now that we are getting closer to having a New Government Procurement Act (NGPA). Now, we can all look forward to a procurement system that adheres to global standards and is more attuned to changing times.

Through the NGPA, we will establish an e-marketplace where agencies can procure common-use supplies and equipment directly from competent and reputable suppliers. And because we want to be sustainable, we also have a Green Public Procurement Strategy to ensure the reduced environmental impact of our procured goods and services.

We will also make our public procurement process more inclusive by providing equal opportunities to vulnerable and marginalized sectors, microenterprises, social enterprises, and start-ups through the Inclusive Procurement Program.

And not only that, we will also open the procurement process to citizen participation and allow the public to observe in the procurement proceedings—true to the spirit of the Philippine Open Government Partnership!

As a testament to this commitment to open governance, we have cemented our position as a global leader in budget transparency, oversight, and public participation based on the recently published 2023 Open Budget Survey. In fact, we are now internationally recognized as the most fiscally transparent country not just in Southeast Asia, but in the whole of Asia as a result of the timely and comprehensive publication of all key budget documents, including the People’s Budget Series.

Alongside our procurement and OGP wins, we have also ramped up our digital transformation, resulting in the full adoption of the Integrated Financial Management Information System (IFMIS), with the Budget and Treasury Management System (BTMS) as the centralized database for all government financial operations.

DBM is also maximizing the transformative potential of digital technology to boost operational efficiency and automate the budget process. We will launch a Digital Budget Management Roadmap, which will be implemented in a phased manner starting with Project TINA, or the Technical Innovations in the National Expenditure Program (NEP) Application Project.

We are also gearing up for the launch of our PFM Reforms Roadmap 2024 to 2028, the blueprint that will harmonize PFM policies across agencies and enable the full digitalization of PFM practices.

And most importantly, we are now preparing to submit the President’s proposed FY 2025 national budget to Congress on July 29. I am very happy to share that President Ferdinand R. Marcos Jr. already approved the proposed Php 6.352 trillion FY 2025 national budget last week.

We thank our dear President for the swift approval of the proposed budget with the theme, “Agenda for Prosperity: Fulfilling the Needs and Aspirations of the Filipino People.” In the words of PBBM himself, “You see a really good thing,” as the budget supports the key pillars of the administration’s Philippine Development Plan 2023-2028 and continues to usher in economic and social transformation for a prosperous, inclusive, and resilient society.

Meanwhile, we continue to implement the FY 2024 National Budget amounting to Php 5.768 trillion, wherein no less than Php 1.011 trillion^[1] is allocated to Local Government Units. Of this amount, some Php 341.10 billion^[2] is allotted for CALABARZON. On top of this, the region will also receive Php 103.34 billion^[3] from the LGUs’ FY 2024 National Tax Allotment.

I hope that all these will be fully utilized para mas makita pa po natin ang kagandahan ng Bagong Pilipinas dito sa rehiyon because ultimately, that is also the wisdom of the Mandanas-Garcia Supreme Court Ruling: to empower our LGUs to serve the people in your localities faster and better.

Kaya sama-sama po nating paigtingin at pagitingin ang ating mga LGUs sa pamamagitan ng wasto at tapat na paggamit ng inyong mga budget tungo sa Bagong Pilipinas kung saan walang Pilipino ang maiiwanan, at kung saan ang gobyerno ay pinagkakatiwalaan ng mamamayan.

Because at the end of the day, what matters most is for our citizens to know and feel that the government is working FOR and WITH them.

Dahil yan ang Bagong Pilipinas — may gobyernong tunay na nagtratabaho para sa mas magandang buhay ng bawat Pilipino.

Maraming salamat po.

Mabuhay po ang City of Tagaytay at ang Region IV-A!  Mabuhay ang Pilipino at ang Bagong Pilipinas!

Wabillahi Tawfiq Wal Hidaya, Wasalamu alaikum wa rahmatullahi wa Barakatuhu.

^[1] B6c.pdf (dbm.gov.ph)

^[2] B6c.pdf (dbm.gov.ph)

^[3]https://www.dbm.gov.ph/wp-content/uploads/Issuances/2023/Local-Budget-Memorandum/LOCAL-BUDGET-MEMORANDUM-NO-87-A-DATED-DECEMBER-28-2023.pdf

Distinguished leaders and members of the business community;

My colleagues in the Philippine Economic Team;

And the organizers and all the participants of this event, good morning.

Assalamu alaikum wa Raḥmatullahi wa Barakatuh.

To the officers and members of the Economic Journalists Association of the Philippines (EJAP) and your partner, San Miguel Corporation, congratulations on the success of this 2024 Economic Forum, and thank you for this opportunity to share the Department of Budget and Management’s plans and priorities.

Sustaining Growth-Enhancing Fiscal Consolidation

In line with the theme of this forum, “Future-proofing the Philippine Economy: Policies and Strategies,” we are committed to pursuing strategic and growth-enhancing fiscal consolidation through recalibrated fiscal targets that are more realistic, practical, and adaptive to external and domestic developments.

Hence, we expect government revenues to increase annually by an average of 10.3 percent, while expenditures will expand by 21.0 percent from 2024 to 2028. Given this revenue and disbursement outlook, the deficit-to-GDP ratio will sustainably decline from 5.6 percent of GDP in 2024 to 3.7 percent in 2028, enabling higher investment in infrastructure development and other growth-enhancing programs.

FY 2024 National Budget

The Php 5.768 trillion National Budget for 2024 was carefully crafted to support the implementation of these growth-enhancing programs.

That’s why more than half of the national budget—67.5 percent—was allocated for social and economic services.

Status of DBM Allotment Releases

And as of May 31, 2024, we have already released Php 5.114 trillion or 88.7 percent of our 2024 national budget. Of this amount, we have released Php 3.417 trillion to government agencies for the implementation of their respective banner programs and projects.

NG Spending Performance

True to our commitment to accelerating economic growth, the national government spent Php 2.258 trillion by the end of May, which is 17.7 percent higher than the same period last year.

We expect this robust spending performance to continue and further accelerate during the last semester, reaching Php 5.754 trillion or 21.7 percent of GDP by the end of 2024.

On our end at the DBM, we are strictly monitoring agencies’ budget utilization and taking the necessary measures to improve the government’s spending efficiency and foster economic growth.

Proposed FY 2025 National Budget

For FY 2025, we will continue to advance our Agenda for Prosperity. For the first two years of the administration of President Ferdinand R. Marcos Jr., we successfully laid the groundwork for a future-proof and sustainable economic development where no Filipino is left behind.

This time, we will build on our gains and strive to fulfill not only the needs, but also the aspirations of the Filipino people we have sworn to serve.

Last July 1, we presented the proposed FY 2025 national budget, pegged at Php 6.352 trillion, to President Ferdinand R. Marcos Jr. and to the members of the Cabinet the next day. This is equivalent to 22.0 percent of GDP and is 10.1 percent higher than the FY 2024 level.

We thank our dear President for the swift approval of this budget. In the words of PBBM himself, “You see a really good thing,” as the budget supports the key pillars of the administration’s Philippine Development Plan (PDP) 2023-2028 and continues to usher in economic and social transformation for a prosperous, inclusive, and resilient society.

In line with the pillars of the PDP, the proposed budget aims to develop and protect the capabilities of individuals and families, transform production sectors to generate more quality jobs and produce competitive products, and foster an enabling environment encompassing institutions, physical and natural environment.

In evaluating the agencies’ budget proposals for FY 2025, DBM considered several factors such as the availability of fiscal space, implementation-readiness of programs and projects, agency absorptive capacity, and alignment with expenditure directions.

And I am happy to share that we are on track for the timely submission of the FY 2025 National Expenditure Program (NEP) to Congress.

Budget and Management Reforms

Finally, we will continue to implement game-changing budget and management reforms that promote bureaucratic efficiency, digital transformation, and open governance.

We are getting closer to having a New Government Procurement Act (NGPA) so we can now look forward to a procurement system that is more attuned to the changing times through an e-marketplace and our Green Public Procurement Strategy. Through the NGPA, we will also make our public procurement process more transparent by enabling public participation at all levels of the procurement process—true to the spirit of the Philippine Open Government Partnership!

And as a testament to this commitment to open governance, we have cemented our position as a global leader in budget transparency, oversight, and public participation in the budget process in Southeast Asia based on the recently published 2023 Open Budget Survey (OBS) results.

Alongside our procurement and open government wins, we have also ramped up our digital transformation, resulting in the full adoption of the Integrated Financial Management Information System (IFMIS), with the Budget and Treasury Management System (BTMS) as the centralized database for all government financial operations.

Closing

Together with the members of the Economic team, the DBM will remain steadfast in its commitment to promoting the sound, efficient, and effective management and utilization of government resources toward the achievement of our national socioeconomic development goals.

And it is our fervent hope that our partners and stakeholders such as EJAP and San Miguel Corporation will help us in pursuing a whole-of-government and a whole-of-society approach so we can sustain our economy’s high-growth trajectory and achieve upper middle-income status by 2028.

Maraming salamat po at mabuhay tayong lahat!

Wabillahi Tawfiq Wal Hidaya, Wasalamu alaikum wa rahmatullahi wa Barakatuhu.

END