selotgokil @ srikaya77 Ledakjitu NG eyes asset sale, other means to fill P1.686-T gap in budget funding source
DESPITE the trillions that the government intends to collect from tax and non-tax sources next year, the Department of Finance (DOF) said it can only raise P4.64 trillion of the national budget.
While this represents 73.35 percent of the P6.326-trillion budget for next year, this still leaves a P1.686-trillion gap that the national government needs to raise through other means.
Earlier, the DOF said the national government intends to sell more of its assets to shore up revenues next year, especially after the recent approval of the guidelines on the Privatization and Disposition of Government Assets by the Privatization Council.
“Given this huge responsibility, the DOF will work 24 hours to respond to all our needs. And we will make sure that every centavo goes to the right projects and programs for the people,” Finance Secretary Ralph G. Recto said in a statement, mostly in Filipino, on Monday.
Recto said with the latest budget, the government’s daily expenditures will amount to P17.33 billion. Of this amount, the DOF can raise P12.72 billion in daily revenues.
He emphasized that the DOF will strive to not just meet but exceed its revenue targets to generate more resources—just as the country’s strong fiscal performance this year has demonstrated.
Recto noted that total revenue collection for 2024 is expected to reach P4.42 trillion, surpassing the full-year target of P4.27 trillion. As a percentage of GDP, the emerging revenues will climb to 16.7 percent, the highest in the last 27 years.
The Finance Chief said emerging non-tax revenues for 2024 are expected to reach P606.6 billion—the highest ever recorded.
“These are all because of the hard work and contribution of the Bureau of Internal Revenue, the Bureau of Customs, the Bureau of the Treasury, our Privatization team, and our GOCCs,” Recto said.
In sustaining this momentum, the Finance Chief stressed the government will continue to adhere to its Medium Term Fiscal Program that reduces the deficit and debt gradually in a realistic manner; while creating more jobs, increasing our people’s incomes, and decreasing poverty in the process.
Meanwhile, Recto said the national budget remains the government’s most powerful tool to deliver the biggest economic benefits to Filipinos.
Signed into law on December 30, 2024, the P6.326-trillion General Appropriations Act (GAA) for 2025 is 9.7 percent higher than the previous year. This is equivalent to 22 percent of 2025’s projected Gross Domestic Product (GDP).
“This budget reflects our collective commitment to transforming economic gains into meaningful outcomes for every Filipino. It is designed not just to address our present needs, but to sustain growth and uplift the lives of generations that are yet to come,” Recto said.
After an exhaustive and thorough review, DOF said the President directly vetoed over P194 billion worth of line items that were not consistent with programmed priorities.
Conditional implementation on certain items is also pursued to ensure that the people’s funds are utilized in accordance with their authorized purposes.
One of those items is the controversial Ayuda Para sa Kapos sa Kita Program (AKAP) which was criticized by the Philippine Economic Society in an open letter to the President
