By Francis Allan L. Angelo
The Marcos administration’s economic team highlighted key socioeconomic advancements and set forth budget priorities for 2025 during a Development Budget Coordination Committee (DBCC) briefing to the House of Representatives on Monday, August 5.
The session marked the beginning of the 2025 budget hearings, with significant focus on national income growth, employment, and poverty reduction.
National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan presented an overview of the Philippines’ recent economic performance.
Balisacan noted that the country’s real GDP per capita grew by 4.8% in the first quarter of 2024, surpassing pre-pandemic levels by over 10%. Additionally, underemployment has decreased to 9.9% as of May 2024, the lowest rate recorded since 2005.
“The economic progress we’ve seen is encouraging, particularly in terms of employment quality and poverty reduction,” Balisacan said, citing the 2023 Official Poverty Statistics Report.
The report shows a reduction in poverty incidence to 15.5% from 18.1% between 2021 and 2023, effectively lifting 2.45 million Filipinos out of poverty, with 1.71 million fewer individuals experiencing food poverty.
The Department of Finance (DOF) Secretary Ralph Recto highlighted the government’s fiscal achievements, reporting that total revenues grew by 15.6% to PHP2.15 trillion from January to June 2024. He assured lawmakers of continued fiscal discipline, projecting a reduction in the debt-to-GDP ratio to 60.4% by 2025.
Meanwhile, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona provided an optimistic inflation outlook, indicating that the Central Bank can maintain its current monetary policy.
However, Remolona emphasized the need for non-monetary measures, including improvements in agricultural productivity and strategic tariff modifications, to manage inflation effectively.
DBCC officials underscored the importance of sustaining the government’s initiatives aligned with the Philippine Development Plan (PDP) 2023-2028.
“To boost growth next year, the Marcos administration will continue to implement the strategies outlined in the PDP 2023-2028, drawing on lessons from the Philippine Development Report 2023,” Balisacan said.
Department of Budget and Management (DBM) Secretary Amenah Pangandaman detailed the proposed PHP6.352 trillion national budget for 2025, with 62.6% allocated to social and economic services.
Education and healthcare are significant beneficiaries, receiving PHP977.6 billion and PHP297.6 billion, respectively. Additionally, PHP4.057 trillion is earmarked for regional development.
The DBCC, comprising the DBM, DOF, NEDA, and the Office of the Special Assistant to the President for Investment and Economic Affairs, plays a crucial role in briefing Congress on economic conditions and ensuring alignment between budgetary allocations and the nation’s development priorities.
