Regional allocations down in 2025 budget

MANILA, Philippines — Funding for regions under the proposed 2025 General Appropriations Act has been reduced to almost 64 percent as the government moved for a more equitable distribution of resources needed for economic growth.

Based on the latest budget brief of the Congressional Policy and Budget Research Department (CPBRD) of the House of Representatives, the allocation for all regions next year is pegged at P4.057 trillion, representing 63.9 percent of the P6.352-trillion National Expenditure Program.

The figure is lower than the 68.6 percent share this 2024 even with the overall budget growth next year and amid greater increments going to the central office and to nationwide allocation.

Next year’s regional share is also significantly lower than the amounts allocated from 2021 to 2023, wherein the figures almost reached 74 percent.

Among major island groups – Luzon, excluding Metro Manila – will get the highest share with P1.537 trillion in 2025, slightly lower than this year’s P1.539 trillion.

The amount is equivalent to 24.2 percent of the total budget, and down from 26.7 percent last year.

Mindanao will receive a higher allocation with P940.3 billion, but the amount was also reduced to 14.8 percent from the previous 15.5 percent.

The Visayas will have an increment with P721 billion for an 11.4 percent share, the same level as this year.

The National Capital Region will see a percentage reduction with P857.9 billion. The NCR’s share in the overall budget was cut to 13.5 percent from this year’s 15 percent.

“Luzon continues to corner the largest share of the allocation, albeit slightly decreasing in amount next year. Both (the) Visayas and Mindanao will have higher budgets, but increments are insufficient to increase their budget shares owing to a heftier increase in nationwide allocation,” the CPBRD said.

The Congress think tank explained that equity remains a fundamental principle in the regional distribution of the national budget, to address fiscal disparities and gaps in development conditions across sub-national units in the country.

An equitable distribution of the national budget, in addition to local government units’ increased shares from national taxes, is crucial in rectifying historical imbalances in regional development, the CPBRD said.