This P6.352-trillion budget aims to fund essential programs and services that impact millions of Filipinos.
As the operating budget for the Philippine Government that was finalized in early December 2024, the General Appropriations Act (GAA) for 2025 plays a pivotal role in shaping government priorities for the coming year.
On December 11, the bicameral conference committee, a meeting of both legislative houses, completed its reconciliation of the proposed budget, which was promptly ratified by both the Senate and the House of Representatives. This P6.352-trillion budget aims to fund essential programs and services that impact millions of Filipinos.
One of the most significant highlights of the GAA is the substantial increase in funding for infrastructure projects. The Department of Public Works and Highways (DPWH) secured an additional P288.6 billion to enhance roads, bridges, and other critical infrastructure, which is expected to boost economic activity and improve service delivery nationwide.
The military also benefited from an increased allocation, with lawmakers approving a daily allowance hike of P350 for personnel to support their welfare and morale.
Notably, the Congress and the Senate emerged as major beneficiaries of this budget, with Congress receiving an additional P18.8 billion and the Senate gaining P5 billion. These allocations, though sizable, have drawn scrutiny amidst concerns over the reallocation of funds from other critical sectors.
On the other hand, several key sectors experienced significant budget cuts. The Philippine Health Insurance Corporation (PhilHealth) faced a staggering reduction of P74.4 billion, raising concerns about its ability to sustain vital health programs. The Department of Social Welfare and Development (DSWD) also suffered a P96-billion cut, potentially affecting critical services for vulnerable populations.
Additionally, funding for free college education was slashed by P3 billion, which may hinder access to higher education for many students.
While these reductions have sparked debate, the 2025 GAA aims to address the country’s pressing needs by focusing on infrastructure development and defense while balancing fiscal constraints. As the government navigates competing priorities, the allocation decisions made in this budget will profoundly shape policies and the daily lives of Filipino citizens in the year ahead.
This landmark budget underscores the challenges of addressing urgent needs while ensuring equitable distribution of resources.
