President Ferdinand Marcos Jr. presides over the 5th National Task Force To End Local Communist Armed Conflict (NTF-ELCAC) Executive Committee Meeting on April 4, 2024 at Heroes Hall, Malacanang Palace. Yummie Dinging, PPA pool 

MANILA (UPDATED) – The National Task Force to End Local Communist Armed Conflict (NTF-ELCAC) will see a threefold increase in its proposed 2025 budget. 

The National Expenditure Program for 2025 allotted P7.8 billion for NTF-ELCAC’s Support to the Barangay Development Program.   

The proposed budget states that cleared barangays shall be allocated with funds for farm-to-market roads, school buildings, water and sanitation system, health stations, and electrification.

"The release of funds shall be subject to the guidelines to be issued by the DBM, in coordination with the NTF-ELCAC," the NEP said.

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The 2024 General Appropriations Act has a similar provision for P2.160 billion for 864 cleared barangays. In the 2024 NEP, that provision has P8.64 billion for 864 cleared barangays. The NEP is the original budget proposal of the president.

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The proposed Total Expenditure Program (TEP) for 2025 is P6,352.39 billion. 

This is P584.79 billion or 10.14 percent higher than the programmed P5,767.60 billion for 2024.

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The proposed total New General Appropriations, requiring legislative authorization, will amount to P4,405.90 billion composed of P4,247.23 billion in programmed appropriations and P158.67 billion in unprogrammed appropriations.

Compared with the 2024 General Appropriations Act (GAA), the proposed level for Programmed New General Appropriations for next year is higher by P227.46 billion or 5.66 percent. 

Departments and agencies will receive a budget allocation of P3,525.89 billion, marking a 0.28 percent increase. The remaining programmed appropriations, amounting to P721.34 billion, correspond to Special Purpose Funds.

"The P217.59 billion increase in SPFs represents a 43.19% growth from the FY 2024 provision, primarily for personnel-related SPFs such as the Miscellaneous Personnel Benefits Fund (MPBF) and the Pension and Gratuity Fund (PGF)," The NEP said.

The proposed budget allocates P158.67 billion for Unprogrammed Appropriations (UA), which may be released under specific conditions: when there are new revenue collections by the Bureau of the Treasury (BTr), revenue collections in any one of the identified revenue sources exceed targets per Budget of Expenditures and Sources of Financing (BESF), and/or when proceeds from foreign loans approved but not considered in the TEP are received. 

The amount will have a significant decrease of P572.78 billion or 78.31 percent from this year’s GAA.

For 2025, automatically appropriated expenditures, which do not require annual legislative approval due to their nature and specific enabling laws, will amount to P2,105.16 billion representing 33.14 percent of the proposed TEP of P6,352.39 billion. Compared to the FY 2024 level, this represents an increase of P357.33 billion or by 20.44 percent.

The NEP also said that Maintenance and Other Operating Expenses (MOOE) will receive the largest share at P2,420.64 billion, which is 38.1 percent of the budget. This amount is an increase of P145.94 billion, or 6.42 percent, over the 2024 allocation of P2,274.70 billion. 

"The MOOE budget supports the implementation of various education, health, and social protection programs, the operations of departments and agencies, and subsidies to Government-Owned or-Controlled Corporations (GOCCs),” the NEP said. 

“The key programs that will benefit from this increase include the Pantawid Pamilyang Pilipino Program, School-based Feeding Program, Government Assistance to Students and Teachers in Private Education, and Social Pension for Indigent Senior Citizens.” 

Meanwhile, the NEP said that the proposed FY 2025 budget allocation for Personnel Services (PS) is Pl,756.85 billion, comprising 27.66 percent of the total program. 

"This corresponds to an increase of P273.57 billion or 18.44 percent compared to the FY 2024 program, on account of requirements for new positions, filling vacancies in key agencies, compensation benefits, and salary adjustments," the NEP said.

The NEP also states that the Capital Outlays (CO) budget was set at Pl,326.83 billion, a slight decrease of P12.26 billion, equivalent to 0.92 percent compared to the FY 2024 budget of Pl,339.09 billion. 

"This allocation accounts for 20.89 percent of the total proposed budget. Infrastructure spending is projected at Pl,506.51 billion, equivalent to 5.24 percent of GDP. This includes projects by the Department of Public Works and Highways (DPWH), Department of Transportation (DOTr), Department of Agriculture (DA), and Department of Education (DepEd), as well as subsidies for LGUs, which include 20 percent development fund from NTA and Bangsamoro Autonomous Region of Muslim Mindanao (BARMM) Annual Block Grant,” the NEP said.

“The proposed budget for Financial Expenses (FinEx) of P848.07 billion represents 13.35 percent of the FY 2025 TEP, corresponding to 26.48 percent expansion from the FY 2024 program. This reflects higher debt service financing requirements due to significant borrowings," it added.