Philippines: $109 billion national budget for 2025 signed

Manila: President Ferdinand "Bongbong" R. Marcos Jr. signed into law the Php6.326 trillion ($109.33 billion) national budget for 2025 on Monday (December 30, 2025).

The signing ceremony, held at Malacañang Palace, coincided with the country's celebration of Rizal Day.

The 2025 General Appropriations Act (GAA) initially proposed a budget of Php6.352 trillion. However, it was trimmed down by Php194 billion after the veto of line items deemed inconsistent with the administration's priority programs.

Among the vetoed allocations were approximately Php26 billion worth of programmes and projects under the Department of Public Works and Highways (DPWH) and Php168 billion in "unprogrammed" appropriations.

“While the final version of the budget reflects many of our shared priorities, some provisions required careful scrutiny," Marcos said during the ceremony.

"The Filipino people have spoken: every centavo must go to programs that truly uplift lives, strengthen communities, and secure the Philippines' future development."

He further emphasised: “After an exhaustive and thorough review, we have directly vetoed over Php194 billion worth of line items that are not consistent with our programmed priorities.”

President Marcos also announced the conditional implementation of several key programs, including the Ayuda sa Kapos ang Kita Program (AKAP).

The AKAP program will now be executed in coordination with the Department of Social Welfare and Development (DSWD), the Department of Labor and Employment (DOLE), and the National Economic and Development Authority (NEDA).

Additionally, 11 other programmes and projects were placed under "conditional implementation". Funds for these initiatives will only be released after their respective implementing agencies issue guidelines to ensure proper execution.

“This way, we ensure that implementation will be strategic, leading to the long-term improvement of the lives of qualified beneficiaries while guarding against misuse, duplication, and fragmented benefits,” Marcos explained. “The appropriation of public funds must not break the public trust.”

Under Philippine law, a presidential veto is the power of the President to reject a proposed bill or specific provisions of a bill passed by Congress. This veto power is outlined in Article VI, Section 27 of the 1987 Philippine Constitution, which governs the legislative process.

There are two main types of vetoes:

Full Veto: The President disapproves an entire bill and returns it to the chamber of Congress where it originated, along with a written explanation of the objections. If the President vetoes a bill, Congress may reconsider it. If at least two-thirds of all members of each House (Senate and House of Representatives) agree to pass the bill despite the veto, the bill becomes law without the President's approval. This is known as overriding the veto.

Line-Item Veto: For bills involving appropriations (budgetary matters), the President may veto specific items without rejecting the entire bill. This ensures greater fiscal control and flexibility in approving budget-related legislation.

Originally scheduled for December 20, the signing of the national budget was delayed to allow for additional review. This review resulted in significant cuts to budgets allocated to critical agencies, including:

Marcos reiterated the government's commitment to responsible fiscal management, stressing that the 2025 budget represents a roadmap for addressing the nation’s most pressing needs.

“This approach is anchored on a simple yet profound truth: the appropriation of public funds must align with our shared vision for a stronger, more inclusive, and progressive Philippines," he concluded.