Manila — The Department of Finance (DOF) has proposed a PHP33.75 billion budget for 2025 aimed at bolstering tax administration and enhancing public services, as stated by Finance Secretary Ralph Recto during the Senate budget hearing on Tuesday.
According to Philippines News Agency, the increased budget request represents a 20.8 percent rise over the 2024 General Appropriations Act (GAA), aligning with the government's strategic priorities under the "Bagong Pilipinas" governance initiative. The DOF plans to use the bulk of the funds, approximately PHP29 billion, to support its core operations and priority programs, focusing heavily on digitalization and administrative enhancements across several bureaus.
The 2025 budget allocation includes significant investments in technology, with PHP4.20 billion earmarked for the Bureau of Internal Revenue (BIR), the Bureau of Customs (BOC), and the Insurance Commission (IC) to spearhead digital transformation efforts. These initiatives are intended to improve the taxpayer experience, streamline trade processes, and enhance fiscal transparency. Additionally, PHP1 billion is allocated under the Special Purpose Funds for the People's Survival Fund (PSF) to support climate adaptation projects for local communities.
Personnel services will consume 41.4 percent of the proposed budget, with maintenance and other operating expenses taking 37.9 percent, and capital outlays accounting for 20.6 percent. Recto emphasized that these allocations are crucial for workforce development and infrastructure improvements, particularly in digitalization, which are expected to yield significant efficiency gains for the government.
The BIR is slated to receive the largest share of the budget at PHP17.68 billion, representing 54.4 percent of the total DOF proposal, while the BOC and the Bureau of the Treasury (BTr) will receive PHP5.66 billion and PHP6.46 billion, respectively. Other DOF offices, including the Insurance Commission and the Bureau of Local Government Finance, have also been allocated substantial funds to support their operations.
"We will ensure that every peso is being stretched to deliver the biggest bang per buck for the Filipino people. Much like our triumphant Olympians, we will always go for the gold," Recto concluded, highlighting the administration's commitment to fiscal responsibility and economic prosperity.