MANILA—The inter-agency Development Budget Coordination Committee (DBCC) has proposed a PHP6.352 trillion national budget for 2025, Budget Secretary Amenah Pangandaman announced on Thursday. This proposed budget represents a 10.1 percent increase from this year's budget of PHP5.768 trillion and is equivalent to 22 percent of the gross domestic product (GDP).
According to the Philippines News Agency, the DBCC will submit the proposed 2025 national budget to Congress on July 29, one week after President Ferdinand R. Marcos Jr.'s third State of the Nation Address (SONA). The proposed budget is based on the theme "Agenda for Prosperity: Fulfilling the Needs and Aspirations of the Filipino People" and aligns with the Philippine Development Plan (PDP) 2023-2028.
Pangandaman stated that the budget aims to develop and protect the capabilities of individuals and families, transform production sectors to generate more quality jobs, and foster an enabling environment. The DBCC maintained its economic growth targets for 2024 to 2028, projecting the Philippine economy to grow 6 to 7 percent in 2024 and 6.5 to 7.5 percent in 2025. "Despite external headwinds, we are expected to continue surpassing most emerging economies," Pangandaman said.
The DBCC expects inflation to settle between 3 and 4 percent this year, closer to the previous assumption of 2 to 4 percent, and to remain within the 2 to 4 percent range from 2025 to 2028. The DBCC also lowered its assumption for Dubai crude oil prices to USD70-USD85 per barrel this year and USD65-85 per barrel from 2025 to 2028. The peso-dollar exchange rate assumption was updated to PHP56 to PHP58 against the US dollar for 2024 and is expected to stabilize at PHP55 to PHP58 through 2028.
For this year, the DBCC raised its goods exports growth target to 5 percent from 3 percent, considering the better-than-expected first-quarter performance and an improved outlook for the global semiconductor market. Goods exports are projected to grow by 6 percent from 2025 to 2028. The DBCC lowered its growth projections for goods imports to 2 percent in 2024 and 5 percent in 2025, with an expected growth of 8 percent from 2026 to 2028.
The DBCC reviews and approves the government's macroeconomic targets, revenue projections, borrowing levels, aggregate budget levels, and expenditure priorities, and recommends the consolidated public sector financial position and the national government fiscal program to the Cabinet and the President.