Fiscal Year Philippine National Expenditure Program: Composition, Allocation, and Financing Technical Report

Key Chapter Title List

1. Macroeconomic Assumptions
2. 2025 National Expenditure Program
3. National Government Fiscal Plan
4. Consolidated Public Sector Financial Condition
5. Debt Service
6. Debt Stock
7. Economic Growth Rate
8. Poverty Situation
9. Inflation Rate
10. Budget Appropriation Sources
11. Expenditure Category Distribution
12. Top Ten Department Budget Allocations

Document Introduction

This report, prepared by the Philippine Senate's Legislative Budget Research and Monitoring Office, is an authoritative technical document analyzing the Philippine National Budget for Fiscal Year 2025. Based on the macroeconomic forecasts of the Development Budget Coordination Committee (DBCC), it focuses on the formulation background, core framework, and implementation pathways of the 6.352 trillion peso National Expenditure Program, providing comprehensive fiscal decision-making references for policymakers and researchers.

The report first clarifies the key macroeconomic assumptions for the 2025 budget formulation, covering core indicators such as economic growth rate, poverty rate, inflation rate, exchange rate, and crude oil prices. The real GDP growth rate for 2025 is projected to be 6.5%-7.5%, with the inflation rate targeted within the 2.0%-4.0% range. These assumptions provide quantitative support for the budget's rationality and feasibility, reflecting the Philippines' anticipation of the domestic and international economic environment.

In the core section on the expenditure program, the report analyzes from multiple dimensions including appropriation sources, expenditure categories, cost structure, departmental allocation, and regional distribution. The 2025 budget shows a 10.1% increase compared to 2024, with planned new appropriations accounting for 66.9% and automatic appropriations for 33.1%. Among expenditure categories, Maintenance and Other Operating Expenses have the highest share (38.1%), followed by Personnel Services (27.7%). The combined share of the Social Services and Economic Services sectors is 62.5%, reflecting a dual emphasis on improving people's livelihoods and economic development.

The fiscal plan and debt management chapter elaborates in detail on the 2024-2025 fiscal revenue and expenditure targets, deficit control strategies, and debt stock structure. The fiscal deficit target for 2025 is 5.3% of GDP, planned to be financed through a combination of domestic borrowing (80.1%) and foreign borrowing (19.9%), while advancing a large-scale privatization program to enhance fiscal sustainability. Regarding debt service, expenditures are projected at 2.051 trillion pesos for 2025, comprising 848.031 billion pesos in interest payments and 1.203 trillion pesos in principal repayments. The debt structure continues the risk control strategy of prioritizing domestic debt.

The report also focuses on the budget allocations for the top ten key departments. The Education department ranks first with 977.598 billion pesos, while key livelihood and infrastructure departments such as the Department of Public Works and Highways and the Department of Health receive significant support. In terms of regional distribution, Luzon accounts for 59.1%, and the National Capital Region (NCR) receives the largest single regional budget share, reflecting the strategic focus of the Philippines' regional development.

This report features detailed data and systematic analysis. Based on official data sources such as the Philippine Statistics Authority and the Department of Finance, it comprehensively presents the policy orientation and implementation framework of the 2025 National Budget, providing an authoritative basis for understanding Philippine fiscal policy, economic development planning, and public sector operations.