BEYOND BUDGET
(Part II)
Assalamu alaikum wa Rahmatullahi wa Barakatuh.
On Aug. 7, 2024, I shared in this column that the ₱6.352 trillion Fiscal Year (FY) 2025 National Expenditure Program (NEP), or the President's proposed national budget, has been submitted to both chambers of Congress for deliberations and approval. With the theme “Agenda for Prosperity: Fulfilling the needs and aspirations of the Filipino people,” I emphasized that it is more than a financial document; it is our roadmap to achieve growth next year, woven through the three pillars of the Philippine Development Plan (PDP) 2023-2028. This week, allow me to expound on these pillars.
Pillar 1: Develop and protect individual and family capabilities
The PDP envisions that, by 2028, Filipinos will “have long and healthy lives in livable communities with enough opportunities for high-quality lifelong learning for them to become healthy, smart, and innovative.” To attain this, we are promoting human and social development.
As President Bongbong Marcos said in his Budget Message, “Toward this vision, the social and economic services will continue to be priority sectors under the Agenda for Prosperity.”
Topmost is revitalizing education. Under the NEP, this sector was allocated ₱977.6 billion, equivalent to 15.4 percent of the budget and 3.4 percent of our Gross Domestic Product (GDP), to ensure inclusive and equitable quality education and promote lifelong learning opportunities for all. To reduce vulnerabilities and provide quality healthcare, the Department of Health, including PhilHealth, was allotted ₱297.6 billion to continue the advanced implementation of the Universal Health Care Act while fully recovering and rebuilding from the pandemic.
Meanwhile, ₱591.8 billion has been allocated for various major social programs. The Department of Social Welfare and Development will receive ₱230.1 billion for its programs, i.e., Pantawid Pamilyang Pilipino Program (4Ps), Social Pension for Indigent Senior Citizens, Protective Services for Individuals and Families and Difficult Circumstances, Philippine Food Stamp, and Sustainable Livelihood Program. The ₱591.8 billion also includes fuel subsidies for the transport sector, assistance for farmers and fisherfolk, as well as housing programs of the national government, among others.
Further, we will increase our kababayans' income-earning ability through the provision of harmonized livelihood and employment programs, which have been allocated with ₱36.8 billion.
Pillar 2: Transform production sectors
By modernizing agriculture and agribusiness, revitalizing industries, reinvigorating services, and advancing research and development, technology, and innovation, I believe we can transform production sectors to generate more quality jobs and competitive products.
Hence, the Department of Agriculture, its attached agencies, and the Department of Agrarian Reform will receive ₱211.3 billion to modernize agriculture and agribusiness to become competitive and to achieve food security.
Meanwhile, quality jobs and competitive products may be attained by supporting micro, small, and medium enterprises and fostering a dynamic science, technology, and innovation ecosystem — for the country to be a smart and sustainable manufacturing, innovation, creativity, and sustainability regional hub. Toward these goals, the Department of Trade and Industry allocated ₱8.6 billion, while the Department of Science and Technology with ₱28.8 billion, under the FY 2025 NEP. To continue rebuilding the tourism sector, the Department of Tourism has been allocated ₱3.4 billion.
Pillar 3: Create an enabling environment
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 ensure macroeconomic stability, we will adhere to the Public Financial Management (PFM) Reforms Roadmap 2024-2028 by implementing the Integrated Financial Management Information System and strengthening the PFM Competency Program, among others — improving efficiency in public service delivery.
Moreover, we will expand and upgrade both our physical and digital infrastructure. We will finance the flagship Build Better More Infrastructure Program, allocating ₱900 billion to the Department of Public Works and Highways, or 14.2 percent of the proposed budget. Meanwhile, the Department of Transportation will receive ₱180.9 billion, more than double from its allocation of ₱74 billion in 2024. Further, to combat graft and corruption, we allocated ₱70.6 billion to rapidly digitalize our bureaucracy.
Additionally, in line with the administration’s focus on promoting inclusive development that reaches even the most remote and underserved areas, the Department of the Interior and Local Government will receive ₱278.4 billion. To uphold national security, modernize defense capabilities, and ensure peace and security, ₱256.1 billion is allocated for the Department of National Defense.
To enhance the administration of justice and institute reforms, the Judiciary is allocated ₱63.6 billion for the efficient functioning of courts and other judicial bodies, while the Department of Justice will receive ₱40.6 billion. Last, to ensure sustainability, climate-related initiatives will now reach ₱1.02 trillion, in our commitment to the United Nations’ Sustainable Development Goal 13.
Beyond budget, the road to development is never easy. But a clear vision, a strong plan, the unwavering support of the people, and a national budget that, if executed with utmost care and diligence, will build upon the gains we have achieved thus far for a future where every Filipino can reach their full potential. As we embark on this journey together, let us remain united in our purpose, steadfast in our resolve, and hopeful for a Bagong Pilipinas we aspire.
(Amenah F. Pangandaman is the Secretary of the Department of Budget and Management.)