House panel endorses DOF’s P33.75-B 2025 budget

The House Committee on Appropriations has endorsed the Department of Finance’s (DOF) proposed PHP 33.75-billion budget for 2025, which prioritizes digitalization efforts aimed at improving tax administration and public service delivery.

Finance Secretary Ralph G. Recto expressed his gratitude to the panel, highlighting that the budget reflects the strategic goals of the government under the “Bagong Pilipinas” initiative.

“Our proposed budget every year is always a faithful reflection of our strategic priorities under the Bagong Pilipinas brand of governance. They are part and parcel of a larger effort to improve tax administration efficiency, deliver more responsive public service delivery, and provide economic prosperity for the Filipino people,” Recto said during a previous briefing in Congress.

Focus on Digitalization and Efficiency

The 2025 DOF budget, which is 20.8% higher than the 2024 allocation, emphasizes investments in digital infrastructure to improve tax collection and transparency.

Approximately 41.4% of the budget is allocated to Personnel Services, while 37.9% will go to Maintenance and Other Operating Expenses (MOOE), and 20.6% is set aside for Capital Outlays.

Key agencies such as the Bureau of Internal Revenue (BIR), the Bureau of Customs (BOC), and the Insurance Commission (IC) are receiving a combined PHP 4.2 billion to drive digitalization.

These investments are expected to enhance the taxpayer experience, streamline trade processes, and bolster fiscal transparency.

The BIR will take the largest share of the budget, with PHP 17.68 billion, as it is tasked with collecting PHP 3.23 trillion in revenues for 2025.

“Kung tutuusin, sulit na sulit po ang budget na ito ng BIR. Ang 17.68 billion pesos na budget ay koleksyon lang nila sa loob ng dalawang araw,” Secretary Recto pointed out.

The BOC, which is expected to collect PHP 1.06 trillion next year, will receive a PHP 5.66-billion budget. Recto noted that “Ang halaga nito ay koleksyon lang nila sa loob ng kwarenta’y otsong oras.”

Support for Climate Adaptation and Local Development

In addition to tax administration and digital upgrades, the DOF budget also supports local climate adaptation projects through the replenishment of the People’s Survival Fund (PSF).

Sultan Kudarat Representative Horacio Suansing, who sponsored the DOF’s budget in the House plenary, underscored the need for investments in local institutions to strengthen macroeconomic fundamentals and ensure long-term growth.

“In view of this chamber’s pursuit to undertake productive investments, particularly in our local institutions, I appeal to my colleagues in Congress to do the same,” Suansing said.

Other Budget Allocations

Other critical allocations include PHP 6.46 billion for the Bureau of the Treasury (BTr), tasked with managing the government’s PHP 1.54 trillion budget deficit, and PHP 1 billion for the Insurance Commission to modernize its data center and ICT infrastructure.

The budget also allocates PHP 433.66 million for the Bureau of Local Government Finance (BLGF), a 28.9% increase from 2024, to support vehicle procurement, construction projects, and office equipment upgrades, including the government’s share in the Asian Development Bank (ADB)-funded Local Governance Reform Project.

The National Tax Research Center (NTRC) and the Privatization and Management Office (PMO) will receive PHP 144.11 million and PHP 111.06 million, respectively, to enhance their digital infrastructure and oversee the privatization of government assets.

Finally, the Central Board of Assessment Appeals (CBAA) will receive PHP 18.05 million, a slight increase from 2024, to improve its capacity to resolve property valuation disputes.

The proposed budget is now awaiting further deliberation in the House plenary before its final approval.