29-7-2024 (MANILA) The Philippine government has unveiled plans for a substantial increase in defence spending for the fiscal year 2025, signalling a strategic shift towards bolstering its external defence capabilities. The Budget Ministry announced on Monday that 256.1 billion pesos would be allocated to defence, marking a 6.4% rise from the current year’s budget.
This significant boost in military expenditure comes against a backdrop of escalating tensions with Beijing over territorial disputes in the South China Sea. The proposed defence budget represents 4% of the government’s ambitious 6.35 trillion peso spending plan for 2025, which was presented to Congress earlier this week.
Breaking down the defence allocation, 204.4 billion pesos are earmarked for the country’s land, air, and naval forces. A further 50 billion pesos will support the armed forces’ revised modernisation plan, reflecting a pivotal shift from internal security concerns to external defence priorities.
Budget Secretary Amenah Pangandaman emphasised the strategic importance of this investment, stating that the planned defence spending is dedicated to “uphold our sovereignty and territorial integrity”.
The Philippines has remained steadfast in its commitment to assert its rights in the South China Sea, even after reaching a “provisional arrangement” with China regarding resupply missions to the contested Second Thomas Shoal. This resolve is underpinned by a 2016 ruling from the Permanent Court of Arbitration in The Hague, which found Beijing’s expansive claims in the region to be without legal basis under international law. However, China has consistently rejected this ruling.
In a move that underscores the government’s commitment to maritime security, the Philippine Coast Guard is set to receive a 6% budgetary increase, bringing its allocation to 31.4 billion pesos. This boost will support the Coast Guard’s crucial role in conducting patrols and escorting resupply missions in the disputed waters.
The proposed 2025 budget, which represents 22% of the country’s gross domestic product and a 10.1% increase from the current fiscal year, is designed to support President Ferdinand Marcos’ ambitious economic agenda. The administration aims to stimulate economic growth by up to 8% and make significant strides in poverty reduction.
In line with constitutional mandates, the education sector remains the primary beneficiary of the national budget, with a substantial allocation of 977.6 billion pesos. Other key sectors receiving significant funding include public works (900 billion pesos), health (298 billion pesos), and agriculture (211 billion pesos).
