The Department of Budget and Management (DBM) is undertaking transformational reforms to boost the Philippines’ chances of becoming an upper middle-income country (UMIC) by 2025.
DBM Secretary Amenhan Pangandaman said the agency is implementing key transformational reforms that will bring the country to UMIC status and bring poverty down to a single-digit level.
“We remain on track with our agenda for prosperity. Let us sustain this momentum,” she said.
The World Bank defines upper-middle-income countries as those with gross national income (GNI) per capita between $4,516 and $14,005 for the fiscal year 2025.
The Philippine Statistics Authority (PSA) earlier reported that poverty incidence among Filipinos dropped to 15.5 percent in 2023 from 18.1 percent in 2021.
Pangandaman cited the department’s achievements such as the enactment of the New Government Procurement Act (NGPA) to combat corruption, the Philippines’ top ranking in budget transparency in Asia and the country’s leadership in the open government partnership.
She also assured that the proposed national budget for the upcoming year would continue to be aligned with the Philippine Development Plan 2023-2028 and the 8-point Socio-Economic Agenda of the Marcos administration.
“Our proposed national budget for next year, which is pegged at P6.352 trillion, will adhere to the Philippine Development Plan and 8-Point Socio-Economic Agenda, and will remain highly responsive to the most urgent national concerns of our Filipino people. And that is to address inflation, to provide jobs to everyone, reduce poverty, and combat graft and corruption,” Pangandaman said.
The proposed budget makes up 22 percent of the gross domestic product (GDP) and represents a 10.1-percent increase from the P5.768-trillion budget this year.
The DBM said education is the top priority of the Marcos administration with an allocation of P977.6 billion, emphasizing the government’s commitment to enhancing the quality and accessibility of education for all Filipinos.
This was followed by Public Works with a substantial allocation of P900 billion and Health with P297.6 billion.
About P278.4 billion is allotted to the Interior and Local Government, in line with the administration’s focus on promoting inclusive development that reaches even the most remote and underserved areas.
To uphold national security, modernize defense capabilities and ensure the safety and sovereignty of the nation, P256.1 billion is designated for the defense sector.
Social Welfare gets P230.1 billion, highlighting the administration’s mission to protect vulnerable populations through various social protection programs.
Agriculture receives P211.3 billion to aid farmers and fisherfolk, modernize agricultural practices and ensure food security.
Transportation gets P180.9 billion for the development and modernization of the country’s infrastructure.
The Judiciary is allocated P63.6 billion to prop up the efficient functioning of courts and other judicial bodies, facilitating timely and fair adjudication of cases.
The Department of Justice receives P40.6 billion to boost prosecutorial services, enhance the administration of justice and push various legal and correctional reforms.
