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Advocates Philippines
Finance Secretary Recto Highlights Digital Push And Fiscal Discipline In 2025 Budget Proposal
Photo credit: DOF
In a recent Senate budget hearing on August 27, 2024, Finance Secretary Ralph G. Recto laid out the Department of Finance (DOF)’s ambitious 2025 budget proposal, emphasizing a major shift towards digitalization and strict fiscal discipline. This move is aimed at transforming tax administration and enhancing public service efficiency, all while staying true to the Bagong Pilipinas governance brand.
“Our proposed budget every year is always a faithful reflection of our strategic priorities under the Bagong Pilipinas brand of governance,” Recto stated. He further highlighted that the budget aligns with a broader effort to boost tax efficiency, deliver more responsive services, and spur economic prosperity for Filipinos.
The DOF’s proposed budget for 2025 is PHP 33.75 billion, marking a 20.8% increase from the previous year. However, it makes up just 0.5% of the overall PHP 6.35 trillion national budget. With a daily expenditure of PHP 17.40 billion, of which PHP 12.72 billion comes from revenues and the rest from loans, Recto described the scale of the financial responsibility the DOF faces.
In breaking down the budget, Recto pointed out that 41.4% is earmarked for Personnel Services, 37.9% for Maintenance and Other Operating Expenses (MOOE), and 20.6% for Capital Outlays. A significant portion, PHP 1.0 billion, is allocated for the People’s Survival Fund (PSF) to support climate adaptation projects in local communities.
Digital transformation is a cornerstone of the proposal, with the Bureau of Internal Revenue (BIR), Bureau of Customs (BOC), and the Insurance Commission (IC) leading the charge. They are set to receive a combined PHP 4.20 billion to enhance their digital capabilities, aiming to streamline tax processes, trade, and improve fiscal transparency. The BIR, in particular, will get PHP 17.68 billion—54.4% of the total DOF budget—reflecting its critical role in revenue collection.
“The BIR’s budget is well worth it as they are expected to collect PHP 3.23 trillion next year. The PHP 17.68 billion budget is just their two-day collection,” Recto noted.
The BOC’s proposed budget of PHP 5.66 billion is small compared to its target collection of PHP 1.06 trillion, while the Bureau of the Treasury (BTr) will manage PHP 6.46 billion against a PHP 1.54 trillion deficit.
Other DOF offices have their respective budgets, including PHP 1.0 billion for the IC and PHP 491.25 million for the Office of the Secretary.
Recto also assured the Senate of the DOF’s solid track record in budget utilization, with a 70% obligation rate in the first semester of 2024 and a strong 90% disbursement rate. The DOF has consistently received an Unmodified or Unqualified Opinion from the Commission on Audit (COA), underscoring its commitment to transparency and good governance.
“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.
“Our proposed budget every year is always a faithful reflection of our strategic priorities under the Bagong Pilipinas brand of governance,” Recto stated. He further highlighted that the budget aligns with a broader effort to boost tax efficiency, deliver more responsive services, and spur economic prosperity for Filipinos.
The DOF’s proposed budget for 2025 is PHP 33.75 billion, marking a 20.8% increase from the previous year. However, it makes up just 0.5% of the overall PHP 6.35 trillion national budget. With a daily expenditure of PHP 17.40 billion, of which PHP 12.72 billion comes from revenues and the rest from loans, Recto described the scale of the financial responsibility the DOF faces.
In breaking down the budget, Recto pointed out that 41.4% is earmarked for Personnel Services, 37.9% for Maintenance and Other Operating Expenses (MOOE), and 20.6% for Capital Outlays. A significant portion, PHP 1.0 billion, is allocated for the People’s Survival Fund (PSF) to support climate adaptation projects in local communities.
Digital transformation is a cornerstone of the proposal, with the Bureau of Internal Revenue (BIR), Bureau of Customs (BOC), and the Insurance Commission (IC) leading the charge. They are set to receive a combined PHP 4.20 billion to enhance their digital capabilities, aiming to streamline tax processes, trade, and improve fiscal transparency. The BIR, in particular, will get PHP 17.68 billion—54.4% of the total DOF budget—reflecting its critical role in revenue collection.
“The BIR’s budget is well worth it as they are expected to collect PHP 3.23 trillion next year. The PHP 17.68 billion budget is just their two-day collection,” Recto noted.
The BOC’s proposed budget of PHP 5.66 billion is small compared to its target collection of PHP 1.06 trillion, while the Bureau of the Treasury (BTr) will manage PHP 6.46 billion against a PHP 1.54 trillion deficit.
Other DOF offices have their respective budgets, including PHP 1.0 billion for the IC and PHP 491.25 million for the Office of the Secretary.
Recto also assured the Senate of the DOF’s solid track record in budget utilization, with a 70% obligation rate in the first semester of 2024 and a strong 90% disbursement rate. The DOF has consistently received an Unmodified or Unqualified Opinion from the Commission on Audit (COA), underscoring its commitment to transparency and good governance.
“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.
Aug 28, 2024
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