Marcos' economic team holds press briefing on 2025 national budget

Short Summary:

The press briefing covers the recently signed ₱6.326 trillion 2025 Philippine National Budget. Key points include the budget's prioritization of infrastructure, education, and social services, a revenue collection exceeding targets in 2024, and the President's use of veto power to ensure alignment with the administration's socioeconomic agenda. Significant line-item vetoes, particularly affecting the Department of Public Works and Highways (DPWH), were explained as necessary to ensure fiscal responsibility and project readiness. The conditional implementation of certain programs was also detailed. The implications include potential legal challenges, but the economic team expressed confidence in the budget's legality and its positive impact on economic growth and poverty reduction. The budget process itself, including the roles of the executive and legislative branches, was discussed.

Detailed Summary:

The press briefing is structured around statements from key members of the Marcos administration's economic team, followed by a Q&A session with the media.

Section 1: Opening Statements

Secretary of Finance: Announced the signing of the ₱6.326 trillion 2025 budget, highlighting that only ₱4.64 trillion is revenue-backed. He emphasized the exceeding of 2024 revenue targets (₱4.42 trillion vs. ₱4.27 trillion target), representing the highest in 27 years. He reiterated the government's commitment to reducing the deficit and debt gradually while improving the economy. Notable quote: "from here on things will just get better because you have a government that works non-stop to deliver the benefits that will keep us progressing as a nation every day."
Secretary of Budget and Management: Expressed gratitude for the President's involvement in reviewing the budget, emphasizing the avoidance of a reenacted budget. She highlighted the President's veto power used to reduce program appropriations that had increased significantly in the Congressional version. The conditional implementation of the Amada sa Kapos na Pamilya (AAP) program was also mentioned.
Secretary of National Economic and Development Authority: Expressed gratitude to Congress for their work and highlighted the budget's alignment with the Philippine Development Plan (PDP) 2023-2028. He emphasized the prioritization of social services and infrastructure, crucial for human capital development and poverty reduction. He noted the President's vetoes to ensure fiscal responsibility and that benefits reach the most deserving. Notable quote: "this decisive action demonstrates the administration's commitment to our fiscal program."
Secretary of Public Works and Highways: Expressed gratitude for the trust placed in the DPWH and committed to using funds wisely and transparently to deliver quality infrastructure.

Section 2: Q&A Session

This section addressed various questions, including:

Significant vetoes: Approximately ₱26 billion in DPWH projects were vetoed due to their lack of alignment with the administration's agenda, lack of readiness for implementation, and ambiguity. A significant reduction in unprogrammed appropriations (from ₱168 billion to ₱178 billion) was also explained.
Education vs. Public Works budget: Clarification was given on the budget allocations for the education sector (over ₱1 trillion) and DPWH (₱1.34 trillion).
Conditional implementation of AAP: This means the program remains in the budget but requires the issuance of guidelines before implementation.
Restoration of budget cuts in DepEd: While direct additions weren't possible due to constitutional limitations, unprogrammed appropriations could be used to augment the DepEd budget if additional revenue is generated.
Legal challenges: The economic team expressed confidence in the budget's legality despite the possibility of legal challenges.
Zero subsidy for PhilHealth: This was explained by the existing surplus and reserves within PhilHealth.
Defense spending: A reduction in the AFP modernization budget was explained due to fiscal constraints.
Agriculture budget: Significant funding was allocated to support the agriculture sector, particularly rice production and post-harvest facilities.
Preventing future budget conflicts: The need for better coordination between the executive and legislative branches was acknowledged, with the President's veto power being the primary mechanism for addressing discrepancies.

The briefing concluded with closing remarks emphasizing the importance of the budget and the government's commitment to its effective implementation.