President Ferdinand R. Marcos Jr. has called on government agencies to manage the 2025 national budget with care and responsibility. On Monday, he signed the 2025 General Appropriations Act into law, after vetoing PHP194 billion in specific allocations that he believed did not align with his administration’s priorities. The initial budget proposal was PHP6.352 trillion, but after the vetoes, it was adjusted to PHP6.326 trillion.
In his public veto message on Tuesday, Marcos highlighted that the 2025 budget is a reflection of Congress’s significant authority over financial allocations. He stressed the importance of using the budget to maintain the country’s economic growth, control inflation, and speed up the delivery of targeted social services and structural reforms. These efforts are aimed at reducing poverty, lowering unemployment, and elevating the Philippines to upper middle-income status.
Despite differences between the final budget and the executive’s initial proposal, Marcos reiterated his commitment to advancing reforms in public financial management, procurement, and digitalization. He emphasized the need for a comprehensive approach involving both government and society to enhance the efficiency and transparency of public services.
Marcos acknowledged the progress made but noted that there is still much work to be done to build a truly inclusive, sustainable, and future-ready economy. He justified his vetoes by explaining that the government’s spending must directly address the needs of Filipinos and support strategic fiscal consolidation for growth.
He pointed out the necessity of prioritizing due to limited resources, stating that fiscal sustainability must not be compromised. Among the vetoed items were PHP26.065 billion for projects under the Department of Public Works and Highways, and PHP168.240 billion for unprogrammed appropriations.
Additionally, Marcos placed certain programs, such as the Ayuda Para sa Kapos Ang Kita Program, under ‘conditional implementation’ within the 2025 GAA. These programs will require the issuance of guidelines by relevant agencies to ensure adherence to applicable laws, policies, and regulations.