DBM Hopes Congress Okays P70-B Salary Hike Budget for Gov’t Workers

BAGUIO CITY: Budget and Management Secretary Amenah Pangandaman expressed optimism that lawmakers will approve the PHP70-billion allocation for the salary increase of state workers in the proposed 2025 national budget. In a press conference during the inauguration of the Department of Budget and Management-Cordillera Administrative Region (DBM-CAR) office in Baguio City on Thursday, Pangandaman acknowledged that there is no assurance the amount will be approved, but noted that the proposed salary increase is based on a study conducted by their office.

According to Philippines News Agency, “We need to wait for Congress’ decision whether to approve the item on the increase in salaries of the employees.” The last salary increase for government workers occurred in 2023, the final tranche of the Salary Standardization Law of 2019, which began in 2020. During a Cabinet meeting in Malacañang on July 2, Pangandaman presented the proposed PHP6.352 trillion budget for next year to President Ferdinand R. Marcos Jr., targeting submission to Congress on July 29, 2024, a week after the Chief Executive’s third State of the Nation Address (SONA).

The DBM chief mentioned that the proposed national budget for next year is 10 percent higher than this year’s PHP5.768 trillion. “We proposed the budget. They have the power of the purse and they can cut down the amount but cannot increase it,” she said. Also included in the proposed national budget for next year is PHP670 billion to PHP800 billion for debt servicing. “During the pandemic, the government continued to spend for social services and other public services even if there was no collection or revenues. The funds the government used came from loans and they are falling due, so we need to have an allocation for the payment of the loans,” she explained.

Pangandaman noted that DBM received budget proposals from various departments amounting to PHP9.2 trillion, which had to be revised since the limit is only PHP6 trillion. “It is now in the hands of the Secretaries of the different departments to defend their budget to Congress during the hearings,” she added.