Friday, April 25, 2025

Business group alarmed by spike in DPWH 2025 budget

The Makati Business Club (MBC) has expressed alarm by the P1.1 trillion budget of the Department of Public Works and Highways (DPWH), which is higher than the Department of Education’s P737 billion, in the bicameral-approved 2025 General Appropriations Act (GAA).

In a statement, the Makati-based business group has called for a “more transparent and accountable process” in finalizing the GAA, known as the National Budget, particularly in the actions and discussions of the bicameral committee.

MBC commends the initiative of President Ferdinand Marcos Jr. in scrutinizing the bicameral-approved 2025 budget before its final passage.

“We are alarmed by some of the adjustments made by the bicameral committee to the 2025 General Appropriations Act (GAA),” MBC said.

MBC highlighted that in the bicameral approved version of the 2025 GAA, the DPWH was given a Php1.1 trillion budget, higher than the Department of Education which will be receiving Php737 billion. “This is equivalent to a net increase of almost Php 289 billion. Putting the DPWH budget higher than DEPED’s,  may violate the constitutional rule which mandates that the highest budgetary priority should be for education,” said MBC.  

Also, it noted that Congress received a budget increase of Php19 billion. “There is no sufficient explanation on the need and/or justification for this budgetary adjustment,” it added.

The group also called attention on the Php 26 billion allotment for the Ayuda Para sa Kapos sa Kita Program (AKAP), apparently a financial assistance subsidy to “near-poor” families. “There is no information on how this will be implemented, and conditions required for receiving the assistance. We note that the Senate has also previously questioned the funds for the program,” the group added.

While funds are allotted for assistance to the poor, MBC wondered why it is not explained why the 2025 GAA removed the Php74.43 billion subsidy for the Philippine Health Insurance Corporation (PhilHealth), a key agency, being the state health insurer.

MBC believes that the National Budget should be designed to address the concerns and needs of the Filipino people. Thus, MBC calls for a more transparent and needs-aligned corrective actions to the 2025 budget.

The business group cited  the March 2024 Ulat ng Bayan Survey by Pulse Asia where the top three concerns of Filipinos are: controlling inflation, increasing pay of workers, and fighting graft and corruption in the government.

“These are clear indicators of what should be the government’s priority. Therefore, the 2025 budget should focus on addressing supply-side inflation, improving infrastructure, addressing workforce skills gap, and driving government efficiency and transparency to attract more job-creating investments,” the statement added.

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