BEYOND BUDGET
Assalamu alaikum wa Raḥmatullahi wa Barakatuh.
As we enter a new year, we carry with us the collective aspirations of progress for the nation. For us in the government, 2025 represents not merely the promise of new beginnings but also the hope and opportunity to implement a General Appropriations Act (GAA), a national budget, that addresses the evolving needs of our people.
The FY 2025 GAA
This year’s GAA, Republic Act No. 12116, signed into law by President Ferdinand R. Marcos Jr. (PBBM) last Dec. 30, 2024, underscores the administration’s commitment to fostering inclusive growth, sustaining economic recovery, and uplifting the quality of life for all Filipinos. Amounting to ₱6.326 trillion, it is 9.7 percent higher than the previous year’s budget and equivalent to 22 percent of 2025’s projected Gross Domestic Product (GDP). I firmly believe that this fiscal blueprint is a testament to our government’s dedication to responsive governance, as it reflects our goal to prioritize critical sectors such as education, healthcare, infrastructure development, agriculture, and disaster management, among others, anchored in the Philippine Development Plan 2023-2028 and consistent with our Medium-Term Fiscal Framework.
As you may know, the Fiscal Year (FY) 2025 GAA faced challenges during its passage, primarily due to significant changes by the Bicameral Committee (BiCam) in Congress. Notwithstanding, PBBM ensured that the National Budget is consistent with our national development plan and was signed on time.
As PBBM noted in his speech during the signing, there were calls to veto the entire General Appropriations Bill (GAB) and to revert to a reenacted GAA. I completely agree with PBBM that this is not an option. As he stated, this “will set us back, delay our vital programs, and jeopardize targets for economic growth, including our goals of achieving single-digit poverty levels, and upper-middle-income status.”
The power of the purse
As I highlighted, the “power of the purse” solely lies with Congress — the House of Representatives and the Senate. According to our Constitution, only Congress has the power to add, remove, or transfer funds, as they are the people’s voice. We, in the Executive, can only prepare and submit a proposed budget. Because we have a democratic process that we must follow and respect, our President can only exercise what the Constitution provides.
Constitutional safeguards
Under the Constitution, there are actions available to the President. He can accept or adopt the GAB fully, without conditions or observations, and sign it to become the GAA.
Also enshrined in the Constitution is the President’s veto power to reject a bill or its specific provisions (in the case of appropriation, revenue, or tariff bills) deemed unconstitutional, impractical, or inconsistent with the administration’s priorities, effectively deleting them as if they did not exist. The President can exercise two forms of direct veto power. The General Veto applies to the entire bill and would result in a reenacted budget. As explained, for us, this is not an option. Another is the Line-Item Veto which allows the President to veto specific appropriations, conditions, or provisions without invalidating the entire budget to ensure that questionable items do not derail the broader objectives of the national budget.
After an exhaustive and careful review, PBBM directly vetoed over ₱194 billion worth of line items that are not consistent with our programmed priorities, including ₱26.065 billion programs and projects of the Department of Public Works and Highways, and ₱168.24 billion under the Unprogrammed Appropriations, which increased by 300 percent.
Further, PBBM placed several provisions under Conditional Implementation, requiring compliance with specified conditions in the issued guidelines before releasing the budget. This includes the Department of Social Welfare and Development’s Ayuda sa Kapos ang Kita Program (AKAP) and the PAyapa at MAsaganang PamayaNAn (PAMANA) Program, among others, to ensure that their implementation will strategically lead to the long-term improvement of the lives of qualified beneficiaries while guarding against misuse, duplication, and fragmented benefits.
PBBM also provided general observations to clarify the provisions’ intent, clearing ambiguities to ensure uniform understanding, and guiding agencies in executing them. Moreover, he directed that all increases in appropriations and new budgetary items be subject to cash programming, applicable budget execution rules, and vetting and approval of the concerned offices to guarantee that these programs and projects are implementable and will benefit our people.
Hence, I would like to commend PBBM for personally being on top of reviewing the BiCam’s version of the Budget and for his discerning use of his constitutional prerogative to veto items that were not consistent with our priorities, better aligning the GAA with our Agenda for Prosperity.
Beyond budget, the new year brings renewed hope and resolve. We, in the PBBM administration, are inspired by the opportunities before us, guided by the principles of fiscal discipline, equity, and responsiveness, as well as our collective commitment to creating a brighter, more inclusive, and sustainable Bagong Pilipinas. With the continued support of our stakeholders and the Filipino people, we are confident that we can turn these aspirations into reality. Together, let us ensure that every peso of the national budget serves its ultimate purpose: uplifting the lives of every Filipino.
(Amenah F. Pangandaman is the Secretary of the Department of Budget and Management.)