Vetoes P194-b line items, keeps AKAP

President Ferdinand “Bongbong” Marcos Jr. signed the P6.326-trillion General Appropriations Act (GAA) for 2025 yesterday, vetoing P194 billion worth of line items and imposing conditions for the implementation of the social protection program “Ayuda sa Kapos ang Kita Program” or AKAP.

The signed GAA trimmed the initially proposed P6.352 trillion spending outlay following the veto of several line items deemed inconsistent with the administration’s priority programs.

He vetoed P26.065 billion worth of projects under the Department of Public Works and Highways and P168.240 billion listed under “Unprogrammed Appropriations.”

With the veto of certain items under the DPWH, the education sector now has the constitutionally mandated lion’s share of the 2025 budget at P1.05 trillion.

It was followed by the DPWH at P1.007 trillion; Department of National Defense, P315.1 billion; Department of the Interior and Local Government, P279.1 billion; Department of Health, P267.8 billion; and the Department of Agriculture at P237.4 billion.

“While the final version of the budget reflects many of our shared priorities, some provisions required careful scrutiny. The Filipino people have spoken: every centavo must go to programs that truly uplift lives, strengthen communities, and secure the future development of the Philippines,” President Marcos said.

“We take our role as stewards of our taxpayers’ money seriously,” he added.

Conditional implementation was also adopted for specific programs, such as the AKAP, to ensure funds are used strategically, adding that government must not be merely a provisional solution, but must address long-term issues.

AKAP will now be implemented in coordination with the Department of Social Welfare and Development, Department of Labor and Employment, and the National Economic and Development Authority.

“This way we ensure that its implementation will be strategic, leading to the long-term improvement of the lives of qualified beneficiaries, while guarding against misuse, duplication, and fragmented benefits,” President Marcos said.

“This approach is anchored on a simple yet profound truth: the appropriation of public funds must not break the public trust,” he added.

The President likewise retained the zero subsidy allocation for PhilHealth as approved by both houses of Congress.

“We will ensure that PhilHealth benefits will continue and even expand (despite the zero subsidy),” Mr. Marcos said.

PhilHealth has approximately P280 billion in reserve funds, a P150 billion surplus, and over P400 billion in investments.

Meanwhile, the Office of the President’s budget 2025 was increased by P5.2 billion as it asked for supplemental funds for the Philippines’ hosting of the ASEAN Summit and Related Summits in 2026, Executive Secretary Lucas Bersamin said.

“Myanmar declined to host ASEAN. Because the sequence is alphabetical, Philippines is next. Our President agreed to host ASEAN because we could not allow it not to happen. That’s a very important part of our international relations,” Bersamin added.

Mr. Marcos also emphasized the importance of transparency and purposive spending, ensuring compliance with budget execution rules, proper cash programming, and oversight by concerned offices.

“With the passing of the Fiscal Year 2025 General Appropriations Act, the responsibility of ensuring that every centavo is spent wisely, transparently, and purposely begins,” he said.

He likewise acknowledged the government’s finite resources, “so much so that even grand ambitions and great plans must be tempered.”

“We must exercise maximum prudence; otherwise, we run the risk of derailing our development agenda for the country,” he said.

Budget Secretary Amenah Pangandaman underscored the constitutionality of the newly-approved budget.

“The President ensured that the budget remained true to our constitutional mandates while exercising his veto power to ensure that the budget ultimately continues to be directed to meeting our agenda for prosperity,” she said.

Finance Secretary Ralph Recto said next year’s budget is the government’s “most powerful tool” to deliver the biggest economic benefits to Filipinos.

Next year’s GAA is 9.7 percent higher than the 2024 budget, and is equivalent to 22 percent of next year’s projected gross domestic product.

Recto explained that of next year’s P6.326 trillion national budget, only P4.64 trillion is supportable by revenues. This translates to daily government expenditures of P17.33 billion, with the Department of Finance bearing the responsibility of generating P12.72 billion in daily revenues.

“We have a big responsibility and the DOF will work 24/7 to ensure that we have enough funds and that every centavo is spent on correct programs and projects,” he said.

For her part, Senate finance committee chairperson Senator Grace Poe said the signing of the 2025 GAA will ensure that government operations remain seamless next year.

“This new budget —rather than a mere reenactment— signals an alignment of fiscal priorities, reflecting a unified commitment to driving sustainable national development,” Poe said.

Poe likewise welcomed the refined guidelines of AKAP: “(With this), we ensure that over 4 million low-income earners, including minimum-wage workers and those in the informal sector, continue to receive the support they need.”

“Wealth transfer programs must always be subject to strict oversight, and through the President’s convergence mandate, AKAP will be better positioned to serve as a genuine social safety net,” she added.

Speaker Martin Romualdez said the signed budget embodies the shared commitment of the President and Congress to make life better for the Filipino people.

“This budget represents the efficient and responsible use of resources, balancing fiscal discipline with the government’s commitment to improving the quality of life for all Filipinos. It is a critical step toward sustained growth and national development,” Romualdez said.

Senate President Francis Escudero said the 2025 GAA was the product of a collaborative process that included the public.

“The General Appropriations Act is not only the most important legislation, but also the longest and most complicated bill that Congress is expected to pass every year. It should therefore no longer come as a surprise that the process is more prolonged and controversial compared to other bills and laws,” he said.

“If governance is defined as ‘allocating scarce resources’ then I am truly elated and encouraged that the people and all the branches of government took an active part in governance and governing of our country. This is precisely what democracy means, and it shows that we have a strong one where the system of checks and balances is alive and well,” Escudero added.

Editor’s Note: This story has been updated. Originally posted with the headline “PBBM formally signs 2025 General Appropriations Act.”