PRESIDENT Ferdinand Marcos Jr. announced on Thursday that he and his Cabinet are conducting a meticulous review of the proposed 2025 national budget to identify and address “insertions” that were not part of the administration’s original submission to Congress.
Speaking at Villamor Air Base in Pasay City, Marcos revealed that the General Appropriations Bill (GAB) passed by Congress significantly deviates from the National Expenditure Program (NEP) his administration proposed in July. “There were a lot of changes from the budget request of the different departments, and we have to put it back in the same shape that we first requested,” the President stated.
Marcos emphasized the importance of ensuring that the 2025 spending plan focuses on priority projects with stronger safeguards against wasteful spending. Initial findings have uncovered proposals lacking proper documentation and clarity on their objectives. “We’re starting to see some project proposals that do not have an appropriate program of work or documentation. It’s not clear where the money will be spent,” he noted.
Deferred Signing and Line-Item Veto
The President postponed the signing of the P6.352-trillion budget originally scheduled for Dec. 20, citing the need for a “rigorous and exhaustive review.” Executive Secretary Lucas Bersamin confirmed that Marcos would exercise his veto power on items deemed inconsistent with fiscal priorities or lacking compliance with laws.
Despite the deferment, Marcos ruled out returning the GAB to the bicameral conference committee, leaving him with only the power to veto specific line items. “There is no procedure to return it to the bicam. It’s finished already in the House and Senate. Now it’s up to us to see what’s appropriate, relevant, and aligns with our priorities,” he explained.
Major Cuts and Controversial Allocations
The proposed 2025 budget includes significant cuts, including:
P86 billion from the Department of Social Welfare and Development (DSWD)
P74.5 billion from the Philippine Health Insurance Corporation (PhilHealth)
P12 billion from the Department of Education (DepEd)
At the same time, the Ayuda Para sa Kapos ang Kita (Akap) program received P26 billion, while the Department of Public Works and Highways (DPWH) saw a massive allocation of P1.1 trillion, raising concerns about disproportionate spending.
Critics have slammed the Akap program as inefficient, while the DPWH budget increase has drawn scrutiny due to its size relative to cuts in social services.
Concerns Over Fiscal Discipline
Marcos defended the zero subsidy for nonpaying PhilHealth members, citing the agency’s P709 billion reserve as sufficient to continue implementing universal health care. He also vowed to address the DepEd’s slashed budget and reassess the DPWH’s allocation.
The President stressed that the government must manage its limited funds carefully, as a portion of the budget is financed through loans. “We have to be very careful with what we spend it on, especially since it includes loans. It should be spent on the right things to ensure we can pay our loans and still make a little profit,” he said.
Constitutional Limitations
Marcos acknowledged constitutional limits to his veto power, explaining that he can only remove provisions but cannot restore budget items already removed by Congress. The 1987 Constitution mandates that vetoed provisions must return to Congress, requiring a two-thirds majority to be reinstated.
The President expects to finalize and sign the budget before the New Year, stating that the review “will take as long as it needs to take” to ensure alignment with the administration’s priorities.
Historical Precedents
This delay recalls past conflicts over budget allocations, such as the 2018 dispute between then-President Rodrigo Duterte and Congress over P75 billion in DPWH funds. Budget officials emphasized that while the President can veto specific items, they cannot reinstate allocations already removed by lawmakers, underscoring the essence of checks and balances in governance.
The 2025 budget review underscores the administration’s commitment to fiscal discipline and prioritization of essential programs, ensuring that public funds are spent effectively and transparently.