Detailing the 2025 Philippine Coast Guard Budget

At the first weeks of the year 2025, the Philippine government, through the Department of Budget and Management or DBM, released the full details surrounding the General Appropriations Act for that year, and with that usually comes with the highlights surrounding the budget of the Department of National Defense, as in the case for outlets like this one.

In another quick discussion in this short-written entry, we will continue covering the 2025 budget relating to the country's national security purposes, only this time this will encompass the Philippine Coast Guard and projects under the Department of Transportation (DOTr) involving the West Philippine Sea.

DISCUSSION OVERVIEW

The Cessna C208CX Grand Caravan Aircraft is currently the mainstay fixed-wing aircraft of the Philippine Coast Guard.
Image Source.

The Philippine Coast Guard’s annual budget, just like those for the Armed Forces of the Philippines, always comes with an ongoing evolution, a focus primarily on its mandate for external defense and orientation to that phase of national security. 

Both budgets belong to the annually enacted General Appropriations Act, of which the 2025 iteration of the law got the signature of Philippine President Ferdinand R. Marcos Jnr on Rizal Day, December 30, 2024.

This article comes as the continuation of the discussions surrounding the 2025 General Appropriations Act, particularly pointing to its implications in relation to the current national defense efforts of the Philippine government, through the Department of National Defense and the Armed Forces of the Philippines. 

To recall, the Revised AFP Modernization Program received an important increase, although the bulk of its allotment aligns at Un-programmed Appropriations, depending on annual government revenue.

As the purpose of this writeup also delves in the country’s push and resolve on its territorial integrity, sovereignty, and national interest that encompasses beyond the scope of the core mandate of the Armed Forces of the Philippines, the duties and responsibilities of the Philippine Coast Guard in the West Philippine Sea also plays a role that the country showed its presence and perseverance in what’s rightfully part of the Philippine Exclusive Economic Zone, even before a more powerful adversary.

With an increasing trend of China’s assertiveness in securing what they claim as ‘theirs’ through the use of their own coast guard, maritime militia, and even naval assets belonging to the People’s Liberation Army Navy at sea, the budget encompassing the Philippine Coast Guard and the projects that the Department of Transportation at-large in the West Philippine Sea are helpful in cementing the country’s interest in West Philippine Sea, securing its marine resources for the citizenry to benefit.

Coming as usual, this article will delve into the plans, programs, and projects presented under the 2025 General Appropriations Act for the Philippine Coast Guard, while relating to the ongoing developments and that the maritime law enforcement agency has at present, such as in purchasing additional white hull assets as part of its fleet expansion. This, coupled with new facilities getting constructed, aims to help the agency uphold its core mandate, especially in increased tensions in the West Philippine Sea.

THE PCG BUDGET IN THE 2025 NATIONAL EXPENDITURE PROGRAM

The budget breakdown of the Philippine Coast Guard's National Expenditure Program, spanning three (3) years.

At a glance, there is a positive trend in the overall allotments presented for the Philippine Coast Guard’s financial requirements under the 2025 National Expenditure Program, as it has highlighted the growing responsibility of the maritime law enforcement agency in enforcing its presence in areas like the West Philippine Sea, along with its efforts to expand its existing Maritime Domain Awareness in securing the Philippine Territorial and Exclusive Economic Zone waters.

The budget of the Philippine Coast Guard in the 2025 National Expenditure Program comes at around Php 31,268,928,000.00 or Php 31.268 Billion, in which it is higher than the 2024’s Php 29,420,681,000.00 or Php 29.421 Billion allotment in the presentation, which itself is higher than the 2023’s Php 21,908,100,000.00 or Php 21.908 Billion allotment. This means that there is at least a 6.39% increase in the 2025 budget, lower than the 25.54% increase in the 2024 proposal as compared to the 2023 budget proposal.

With the positive trend also comes the same picture on the specific expenditure clusters that describe an operational component of a government agency like the Philippine Coast Guard, whereby there’s a general increase on both Personnel Services (PS) and Maintenance and Other Operating Expenses (MOOE), while there’s a general decrease on the maritime law enforcement’s Capital Outlay (CO) allotments as compared to the previous year. The breakdown of each expenditure cluster comes as follows.

The overall allotments for Personnel Services (PS) for basic salary and benefits for the Philippine Coast Guard’s uniform and civilian personnel composition comes at around Php 23,112,726,000.00 or Php 23.112 Billion, of which it comprise the largest percentage of the agency’s 2025 National Expenditure Program allotments that is at around 73.92% of the total budget allotted in this presentation. It is higher than 2024’s Php 19,739,399,000.00 or Php 19.739 Billion, and 2023’s Php 19,857,096,000.00 or Php 19.857 Billion.

Aside from Personnel Services or PS, another thing to point out is the composition of allotments under the Maintenance and Other Operating Expenses or MOOE, whereby it has the proposed figures under the National Expenditure Program for 2025 amounting to Php 7,086,919,000.00 or Php 7.086 Billion, composing about 22.66% of the total proposed budget in this presentation. It is higher than 2024’s Php 4,744,045,000.00 or Php 4.744 Billion, and 2023’s Php 3,571,565,000.00 or Php 3.572 Billion.

Completing this composition is the budget allotments under Capital Outlay or CO, whereby it saw a decrease in figures as compared to the first two (2) budgetary clusters, as discussed. For the year 2025, the figures provided under the National Expenditure Program of the said fiscal year amounts to Php 1,081,228,000.00, or Php 1.081 Billion, comprising only about 3.46% of the total budget. For comparison, figures for 2024 and 2023 are at around Php 4,744 Billion and Php 1.327 Billion, respectively.

The general increase of both Personnel Services (PS) and Maintenance and Other Operating Expenses (MOOE) sees as the ongoing increase on the number of hired personnel to the maritime law enforcement agency, along with the operational and repair requirements for the agency’s facilities and white hull vessels that is likely to receive in the succeeding years. While the National Expenditure Program provides the amounts as proposed at a glance, the 2025 General Appropriations Act gives a full picture.

THE ACTUAL BREAKDOWN UNDER THE 2025 GENERAL APPROPRIATIONS ACT

Here is the actual breakdown of allotments for the Philippine Coast Guard under the 2025 General Appropriations Act.

As the budgetary figures provided under the 2025 National Expenditure Program comes as an initial and also a sneak peek into what will the budget of a certain government agency will look like, the 2025 General Appropriations Act provide as the final budgetary figure that a government agency like the Philippine Coast Guard will see as a basis for its allotment, which will be its budget to use for its personnel and operating expense requirements for the said fiscal period.

The budget of the Philippine Coast Guard in the 2025 General Appropriations Act comes at around Php 33,251,928,000.00 or Php 33.252 Billion, which is actually higher than the figures presented under the National Expenditure Program of the maritime law enforcement agency with the aforementioned figures provided in this writeup. This means that the budget of the Philippine Coast Guard saw an increase of Php 1,983,000,000.00 or Php 1.983 Billion.

Going further, the breakdown between the expenditure cluster goes as follows - Php 23,100,781,000.00 or Php 23.101 Billion for Personnel Services or PS, Php 7,086,919,000.00 or Php 7.087 Billion for Maintenance and Other Operating Expenses or MOOE, and Php 3,064,228,000.00 or Php 3.064 Billion for Capital Outlay or CO, totaling to the aforementioned figure that saw an increase as compared to the proposed ones under the National Expenditure Program.

This means that the budget for the Personnel Services comes with a minor decrease of Php 11,945,000.00, likely pointing to the number of personnel separating from the service through multiple means such as resignation, transfer of agency, reaching the mandatory age for retirement, or applying for the optional retirement package. Budgetary numbers provided usually correspond to the actual number of personnel in service, with data originating from the agency’s Human Resource directorate.

Meanwhile, there are no changes on the overall allotment to the Philippine Coast Guard’s own Maintenance and Other Operating Expenses (MOOE) requirements, which stayed at Php 7,086,919,000.00 or Php 7.087 Billion for both the 2025 National Expenditure Program and the 2025 General Appropriations Act. 

This means that their requirements for upkeep facilities and operating PCG equipment lines up into what should be their actual expenditure projections on the said fiscal period.

Finally, the Philippine Coast Guard’s Capital Outlay, under the 2025 General Appropriations Act, saw more than a twofold increase, as it saw the increase from Php 1,081,228,000.00 or Php 1.081 Billion in the 2025 National Expenditure Program increased into Php 3,064,228,000.00 or Php 3.064 Billion, with a difference being at Php 1,983,000,000.00 or Php 1.983 Billion. This will enable the agency to improve its capabilities by acquiring more hardware and building new facilities.

From the provided figures, the overall increase in allotments for the Philippine Coast Guard under the 2025 General Appropriations Act directly attributed to the increase in allotments under its Capital Outlay (CO) funding cluster, while there is a decrease and no change on the allotments of both the Personnel Services (PS) and Maintenance and Other Operating Expenses (MOOE), respectively. 

Not mentioned here are the funding resources done through Official Development Aid or ODA loans, like the additional Teresa Magbanua class Multirole Response Vessels (MRRVs).

DOTR'S WEST PHILIPPINE SEA PROJECTS IN 2025

Pag-asa island now comes with a hangar and an air traffic control tower.
Screen grab from ABS-CBN News Channel.

As the Philippine Coast Guard falls under the organizational jurisdiction of the Department of Transportation or DOTR, it is as well worth discussing and delving with the projects that the transportation department have that has a relation with national security push, particularly on matters that correlates to the entire government’s push into cementing its presence in highly contested areas like the Kalayaan Island Group in the West Philippine Sea.

Based on the projects list provided by the 2025 General Appropriations Act for the earmarked programs set by the Department of Transportation or DOTR, one highlighted project on the list is the Airport Development and Expansion of Pag-Asa Island Airport (in Kalayaan Island Group), which amounts to Php 1,650,000,000.00, or Php 1.650 Billion Pesos. This budget is likely to provide continuous work on the airport facilities on the island, such as the air traffic control building and hangar facilities (see image above).

Another highlighted project is the Pag-Asa sheltered port project amounting to Php 300 Million, which refers to the dredged part of the island that can accommodate Philippine vessels of both civilian and government enforcement in nature, making it convenient to provide the much needed sustainment supplies for the troops and inhabitants of the island, along with an immediate deployment of heavy equipment and armaments that cement the country’s presence in an island part of the Kalayaan Island Group.

Finally, completing the list is the construction of Sheltered Port at Lawak Island, which is part of the Kalayaan Island Group municipality as the Pag-Asa island itself. Currently, the island, internationally named as Nanshan Island, comes with a small contingent of Philippine Coast Guard and Armed Forces personnel deployed in the area, and having a sheltered port in the island will help not only to cement the country’s presence but also to give added protection among Filipino fisherfolk during harsh storms.

Amounting to Php 1,080,000,000.00 or Php 1.080 Billion, the Phase 2 of the construction of a Sheltered Port at Lawak island is the continuation of what has already invested there, whereby an amount of Php 800,000,000.00 or Php 800 Million has already provided for the construction of the facility as part of the 2024 General Appropriations Act. Likewise, both the airport expansion and the sheltered port on Pag-Asa island are a mere continuation of the plans earmarked by the Transportation Department in prior years.

All the aforementioned projects aimed to improve not only the well-being of the troops and inhabitants within the Kalayaan Island Group in the West Philippine Sea, but it gives additional presence and resolve that the Philippine government and citizenry at-large provides attention and added support in protecting the country’s national interest and sovereign rights in the West Philippine Sea area, all of which are within bounds of the 1982 United Nations Convention on the Law of the Sea or UNCLOS.

Coupled with the current efforts by both the Philippine Coast Guard and the Armed Forces of the Philippines to improve their capabilities further for territorial defense purposes, the projects set by the Department of Transportation as mentioned play a vital role in providing support in further improving and fortifying the Philippine positions in the West Philippine Sea, all despite having incursions from both the China Coast Guard together with accompanying Chinese Maritime Militia ships.

LOOKING FORWARD

A scale model of the HDP-500 OPV as presented by HD Hyundai during the ADAS 2024 Exhibition.
File Image.

The budget of the Philippine Coast Guard in the 2025 General Appropriations Act, as opposed to its proposals under the 2025 National Expenditure Program, shows that the budget allotment increase, especially on its Capital Outlay related expenditures, are helpful for the maritime law enforcement agency under the Department of Transportation to further fulfill its mandate, especially that it plays a crucial role as the current frontline component in challenging Chinese elements in the West Philippine Sea.

The increase fully reflects the general trend on its budgetary requirements, all of which saw a constant increase on its needed budget allotments through encompassing years mentioned in the first parts of this writeup. 

The trend as presented is not that surprising, given that there is also a general increase of white hulls entering the service, along with the establishment of new facilities and recruiting the pool of aspiring applicants that wanted to join the service.

As mentioned earlier on the detailed breakdown of the expenditure cluster of the Philippine Coast Guard’s own budget, the numbers do not cover any soft loan or similarly arranged scheme that correlates to the agency’s improvement of its own capabilities, particularly to the recent purchase of Japanese-made Multirole Response Vessels and additional Teresa Magbanua-class MRRVs, all of which having the JICA Official Development Aid loan as the source of funds.

Adding to this is the ensured continuity with the ongoing rehabilitation and facility improvement projects in various Philippine outposts in the West Philippine Sea that is currently defined as part of the Kalayaan Island Group municipality of the Province of Palawan. Pag-Asa island’s current improvement of both of its airport and sheltered port emphasizes the importance of those facilities that increase the flow of logistics on goods, supplies, and much-needed goods from the Philippine mainland.

Aside from Pag-Asa island, the improvement in Lawak island, which is another Philippine outpost in the West Philippine Sea and as part of Kalayaan Island Group, also gives expanded presence for the country’s resolve in ensuring its national interest within its designated Exclusive Economic Zone or EEZ, whereby the national government sees its importance that the said projects have included in the 2025 budget of the Department of Transportation that also benefiting the country’s defense prospects.

The role of the Philippine Coast Guard, along with the budgets allocated by the Department of Transportation in the West Philippine Sea projects, shows that the country’s national defense efforts encompass the national government at-large, and not just the ones in the front-lines like the Armed Forces of the Philippines. 

The support among government agencies ensures that territorial integrity also comes with improving presence by providing better infrastructure for the assigned outposts to benefit.

Ultimately, the whole of nation approach in deterring the encroachment of a regional superpower in the country’s doorstep will come as a welcoming way forward in ensuring that the country’s citizenry and national interest will benefit, while making sure that the country is safe from threats that are now involving multiple domains, as the Chief of Staff of the Armed Forces of the Philippines mentions. As a country, the Philippines, with its citizens being united, stands against aggression posed against its own sovereignty.

To access the following documents, here are the following links below.

1. GAA 2025 - Philippine Coast Guard, under Volume 1-B, Chapter XXVI (archived).

2. GAA 2025 - Department of Transportation (Office of the Secretary), under Volume 1-B, Chapter XXVI (archived).

Here is an archived version of Volume 1-B webpage of the Department of Budget and Management or DBM.

(c) 2025 PDA.

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Philippine Defense Budget in 2025 as Explained

As the year 2024 coming on its end, so does the current year budgetary requirements, and with it comes a new year and a new round of budgetary obligations and contract fulfillments, with the Philippine government now enacts anew the 2025 iteration of the General Appropriations Act. 

Coming at is usual, the enthusiasm and full interest into delving more in discussing the defense budget itself goes stronger than ever, as the figures provided in the final version of the law sets the basis on which projects pushed by the Armed Forces of the Philippines for its Re-Horizoned 3 vision will probably get through for the year.

OVERVIEW

The 2025 General Appropriations Act funds all projects of the government for the said year.
This includes the ones under the Revised AFP Modernization Program.

On the morning of December 30, 2024, the day the Filipino people commemorate the execution of Dr. Jose P. Rizal in Luneta Park on what is now called Rizal Day, President Ferdinand R. Marcos Jr., officially signed the Republic Act 12116 or the 2025 General Appropriations Act into law, which comes after scrutiny and vetoing several of the line items deemed inappropriate or contrary to the country’s constitution, and ensuring that there will be no reenactment of the 2024 national budget in 2025.

It comes as a testament that the executive branch of the government ensures that the 2025 national budget goes smoothly, especially that several of the cabinet secretaries, together with the president, work through the 2024 Christmas season to ensure that the kinks of the bill will get ironed out before getting passed into law. Of course, this move will not be a guarantee, as there will probably be legal challenges that disputing the constitutionality of the law gets raised along the way.

Speaking of questionability, there are concerns that the budget intended for the Revised AFP Modernization Program gets reduced throughout its thorough review as accomplished by both chambers of congress (the House of Representatives and the Senate), although there are items discussed previously that might come as a helpful push for the Philippine military to fund its projects for the year 2025 and beyond in this writeup involving the plans and programs under Unprogrammed Appropriations.

Adding to this is that the reduction made by the legislative branch of the government for the 2025 allotments of the Revised AFP Modernization Program come as an addition to an already-reduced budgetary allotment originally proposed by the Department of National Defense or DND, amounting to around Php 245 Billion. 

This means that the initial presentation by the Department of Budget and Management for this allotment under the National Expenditure Program or NEP has reduced to a meager Php 75 Billion overall.

With the glance of this writeup for the 2025 General Appropriations Act for national defense purpose fully presented, the rest of this entry will cover much of the details encompassing the Philippine Defense Budget, particularly the ones that encompass the Revised AFP Modernization Program for both its dedicated item and the ones included in Unprogrammed Appropriations, along with the trends it has as compared to previous year allotments and data provided in various National Expenditure Programs presented.

AS PROVIDED IN THE NATIONAL EXPENDITURE PROGRAM FOR 2025

Revised AFP Modernization Program as provided under the 2025 National Expenditure Program.
Image Source.

At a glance, the National Expenditure Program is the budgetary plans and programs of the executive branch of the government - from the Office of the President down to the respective departments and units, along with the budgetary requirements of the Judiciary and Legislative branches of the government, presented before the national bicameral legislature for budget deliberation. From here, both the Senate and House of Representatives, having the power of the purse, will trim the budget further down.

On the 2025 National Expenditure Program presented before the congress for deliberation, the budget allotted for the Revised AFP Modernization Program as proposed comes at around Php 50 Billion, which is basically similar to the 2024 National Expenditure Program submitted before the bicameral legislative branch in 2023. This gets reduced further by Php 10 Billion into the Php 40 Billion that comprises the 2024 budget of the Revised AFP Modernization Program. 

As for the Unprogrammed Appropriations, the Revised AFP Modernization Program for the 2025 National Expenditure Program comes at around Php 25 Billion, whereby this comes nonexistent on the 2024 iteration of the National Expenditure Program presented to the congress in 2023. 

Of course, the differential amount of Php 10 Billion reduced from the original budget of the Revised AFP Modernization Program item proper has re-align into this portion, aiming to maintain the overall total amount presented.

Compared to the 2024 National Expenditure Program, the 2025 version has seen increased budgetary requirements for the Revised AFP Modernization Program, of which there comes a Php 25 Billion increase on the total budget allotted for the program, totaling at around Php 75 Billion. This means that there is at least a ⅓ increase in budgetary allotment for the needed acquisition of military equipment for enhanced firepower and logistical capability.

Moving on to the other parts of the 2025 defense budget based on the National Expenditure Program for the said year, the entire Department of National Defense has the overall presented budget of around Php 254,115,158,000.00, of which Php 124,946,421,000.00 of the allotment is for the Philippine Army, Php 49,800,229,000.00 for the Philippine Air Force, and Php 49,046,516,000.00 for the Philippine Navy. Funding for Personnel Services (PS) comprises the largest pie of the defense budget.

For context, Personnel Services or PS comprise the basic salary and benefits of each military personnel serving the Armed Forces of the Philippines and under sub-units of the Department of National Defense, with different personnel receiving larger salary and benefits as the rank they hold increases. 

Case in note, military personnel receive additional allowances and benefits that correspond to their line of work, such as with Hazard Pay. Civilian employees working in the AFP are also part of this budget.

As the initial presentation for the 2025 National Expenditure Program for the overall defense budget of the Philippine military for this fiscal period, giving a picture of what has presented for by the executive department for congressional deliberation, the following discussion will provide the finality of the national defense budget under the 2025 General Appropriations Act, with presented comparisons and other relevant details on how the budgetary trends increase or decrease to the final figures for utilization.

THE BREAKDOWN OF THE MAIN NATIONAL DEFENSE BUDGET

Here is the programmed budget for the National Defense for the year 2025.
From the 2025 General Appropriations Act.

Before delving into the budgets of the Revised AFP Modernization Program under both the item of its name and the one under the Unprogrammed Appropriations, it is important to discuss the main budget that the Department of National Defense as a whole receives, as comparable to the budget it receives in the previous years. This is essential as the military hardware purchased under the AFP Modernization will get maintenance and workforce support through this main defense budgetary line.

Based on the data presented under the 2025 General Appropriations Act, the Department of National Defense’ overall budgetary allotments it will receive amounts to Php 271,924,071,000.00, which is higher than Php 238,356,544,000.00 it received in the 2024 General Appropriations Act. This means that it received an additional amount of Php 33,567,527,000.00 with all the Operating Expenditures from Personnel Services (PS) to Maintenance and Operating Expenses and Capital Outlay, receiving an increase.

Just like in 2024 and in the years preceding it, the significant chunk of the main national defense budget goes to the Personnel Services or PS amounting to Php 163,551,336,000.00, all of which will help provide salaries and added benefits for all personnel belonging to the Department of National Defense, including all military personnel of the Armed Forces of the Philippines. Take note that civilian personnel of agencies like the Office of Civil Defense also receive a portion from this budget.

As for the Maintenance and Other Operating Expenses or MOOE, the defense department receives an amount totalling to Php 79,392,899,000.00, of which the significant chunk expectedly went to the Armed Forces of the Philippines, amounting to Php 79,535,138,000.00. 

This amount is necessary for the Armed Forces to operate and maintain its military facilities, and also to ensure that the military hardware it purchased under the modernization will prolong its service within the military.

Finally, the defense department received a Capital Outlay budget amounting to Php 28,979,836,000.00, of which the Armed Forces of the Philippines received a budget of around Php 25,498,726,000.00. 

This is useful in purchasing items that can sustain through this source, usually being small items involving firearms, regular service vehicles, and additional facilities on an existing military outpost or base. This goes differently on the line-up projects slated under the Revised AFP Modernization Program.

THE REVISED AFP MODERNIZATION PROGRAM BUDGET

Since the release of the Republic Act 12009 or the New Government Procurement Act, the provision that exempts the Revised AFP Modernization Program from the Republic Act 9184 has disappeared.

For the year 2025, the budget allotted for the Revised AFP Modernization Program amounts to around Php 35,000,000,000.00, which is lesser than the one allotted under the 2024 General Appropriations Act, which amounted to Php 40,000,000,000.00.

This means that there is a reduction of around Php 5,000,000,000.00 from the previous budget, and around Php 15,000,000,000.00 from the 2025 National Expenditure Program budget of around Php 50,000,000,000.00.

This means that the previous budget deliberations for the Revised AFP Modernization Program comes with a concerning moot point, whereby it initially comes as a ‘initially disappointing turn of events’ when this first report of a budgetary reduction came in December 2024. 

It is concerning that the Armed Forces of the Philippines still have various acquisition projects rolling under the Multi-Year Contracting Authority or MYCA scheme, reducing much of the prospects for new acquisition projects for the year.

Case in note, the Armed Forces of the Philippines still finances a portion of both the Philippine Navy’s Corvette Acquisition Project (Miguel Malvar-class frigates) and the Offshore Patrol Vessel Acquisition Project under this budgetary item, along with other ongoing projects belonging to other military service branch such as the Long Range Patrol Aircraft Acquisition Project, additional S-70i Black Hawk Combat Utility Helicopters, and the C-130J-30 Cargo Aircraft of the Philippine Air Force.

One thing to point in the budget is the removal of the special provision that was in place in the 2024 General Appropriations Act, specifically pointing to the item’s exemption from the regular rules and regulations stipulated in the Republic Act 9184 or the 2003 Government Procurement Reform Act. This came as the government already passed and enacted the New Government Procurement Act or the Republic Act 12009 into law, providing such special provisions pertaining to purchasing military hardware.

This means that acquisition projects from the year 2025 onwards now have the additional options to get materialized into various means of procurement through the enactment of the law, ensuring that the budget allotments for the 2025 General Appropriations Act for the Revised AFP Modernization Program gets fully used up. 

It will provide additional justification for the need of an additional allotment in the succeeding years, as the entire Armed Forces of the Philippines require an additional budget for its Re-Horizoned 3 plans.

Ultimately, this will give the Philippine military and the larger scope that encompasses the defense establishment to provide initiatives into pushing the creative financing schemes that the government is pushing for the purchase of much-needed military hardware that the country needs for its national defense, specifically under the Comprehensive Archipelagic Defense Concept or CADC. The schemes provided include securing soft loan options from countries and defense entities for securing the hardware AFP needs.

While the budget provided to the Revised AFP Modernization Program itself is indeed underwhelming compared to the one provided in the previous year's budget, the discussion will come as a misleading perception if the topic will only encompass this one portion of the defense budget itself. 

The next portion will talk about the final piece that will complete the total allotment provided by the national government to the Revised AFP Modernization Program itself for the year 2025.

THE LINE ITEM UNDER UNPROGRAMMED APPROPRIATIONS

There is at least the Php 40 Billion budget from the Unprogrammed Appropriations for the Revised AFP Modernization Program, totalling Php 75 Billion for the 2025 Budget.

To complete the Php 75 Billion budget allotments that the Revised AFP Modernization Program received for the year 2025 under the General Appropriations Act for the said year, the allotments lined under the Unprogrammed Appropriations amounts to around Php 40,000,000,000.00 (Php 40 Billion), which is higher than the Php 10,000,000,000.00 (Php 10 Billion) budget allotment provided under this line item under the 2024 General Appropriations Act.

This means that there is at around Php 30,000,000,000.00 (Php 30 Billion) difference on the budgetary trend between the 2025 and 2024 annual budget for the Revised AFP Modernization Program under Unprogrammed Appropriations. 

The decrease of allotment on the programmed Revised AFP Modernization Program budget and an overall increase of the budget for funding military acquisition projects come with an advantage and disadvantage in terms of how projects will go through the fiscal year.

In this explainer provided by GMA News after President Marcos slashed most of the programs lined under this cluster (seen on the screenshot above), items under Unprogrammed Appropriations are ones that can only push through if the government’s revenue collection (basically the main job of the Bureau of Internal Revenue for taxation and Bureau of Customs for tariffs), exceeds the revenue targets set by the government through the agencies, or when foreign loans and additional grants have provided.

It means that the project line items for the Revised AFP Modernization Program under the Unprogrammed Appropriations have the uncertainty of not pushing through, with excess revenue collection of the government serving as the lifeline for most of the projects of the government to push through. 

As discussed previously, the Department of National Defense presented respective acquisition projects under unprogrammed appropriations during its budget deliberation in the House of Representatives.

Some of the acquisition projects presented have recently become priority projects of the Armed Forces of the Philippines to push through in the year 2025, as there are several projects that are under Multi-Year Contracting Authority or ‘MYCA’ scheme likely set into completion in this said fiscal year. 

Completion of projects such as the purchase of Guarani 6x6 Armored Personnel Carriers for the Philippine Army will relieve financial strain for several of the lined projects to push through.

PRIORITY ACQUISITION PROJECTS

Additional squadron of FA-50s and additional frigates are both part of the priority projects slated in 2025.

As the enactment of the Republic Act 12116 provided a full scope for the Philippine Defense Budget, specifically the one encompassing the Revised AFP Modernization Program, the Department of National Defense provided clear reference on which acquisition projects will get the utmost priority in funding for 2025. 

This preference goes in line with the department’s Comprehensive Archipelagic Defense Concept or CADC, gearing the Philippine military into territorial defense posture as its primary focus.

The set of acquisition projects for 2025 received thorough and clear discussions during the budget deliberation of the Department of National Defense in the House of Representatives, with several of those projects already eyed by every service branch of the Armed Forces of the Philippines years prior. 

Several of the projects mentioned encompass the follow-up orders of existing military hardware already serving the Philippine military, showing satisfaction with the ones already purchased.

Among those projects that might go as a priority in 2025 is the purchase of additional FA-50PH for the Philippine Air Force, whereby the addition of at least 12 units or a squadron more of the South Korean-developed and produced aircraft might help increase the badly needed capabilities of the service branch. 

This is important, especially that flight hours and airframe stress have inflicted on the existing squadron of FA-50s that the Philippine Air Force currently maintains, that an additional will relieve that stress.

Another project sought after as priority in 2025 is the second iteration of the Frigate Acquisition Project, of which this will come as a full complement and will no longer have any Fitted For But Now With (FFBNW) provisions in its subsystems acquisition and integration. This means that the Philippine Navy will get the full package that comes with the ships, and might likely come as an improvement over existing warship types that the fleet currently has, including the upcoming Miguel Malvar-class frigates.

Aside from the said key priority programs, the other projects that might likely come with the year is the potential acquisition of additional Self-Propelled Howitzer System like the ATMOS 2000 from Elbit Systems Limited, and additional Ground-based Air Defense Systems like the SPYDER-MR air defense systems that the Philippine Air Force currently have in its inventory. All of which have the aim to improve the country’s territorial defense posture against foreign adversaries that might pose a threat to national sovereignty.

The priority projects presented come as an effort of the Armed Forces of the Philippines and the Department of National Defense to advance and improve its overall capabilities that the country aims to have, particularly with the uncertainties that are now brewing in terms of overall security and stability in the region. 

From this point on, it will not be that surprising that both the projects lined up will get the utmost priority, especially with the ones relating to both the Philippine Navy and the Philippine Air Force.

With the full presentation of the entire defense budget and the Department of National Defense aim to provide further support for the Armed Forces of the Philippines’ Modernization Program, what remains is for fulfilling the projects lined up in 2025, particularly to the ones slated under the Unprogrammed Appropriations of the fiscal year budget. Once the additional revenue collection of the government gets fulfilled, so does the materialization of projects provided under this uncertainty of a budgetary item.

ENDING NOTE

A relief will come to minimize operational stress on the existing FA-50 aircraft of the Philippine Air Force.
Image from John Chua.

Based on historical trends, the defense budget for the year 2025 is the highest ever provided to the Armed Forces of the Philippines, particularly to the ongoing Revised AFP Modernization Program. 

This is very important, as the modernization is now embarking on the Third and ultimate step that really counts as the most ambitious one to-date. Coined as the Re-Horizon 3 phase of the program, the Executive Branch provided at least US$35 Billion or Php 1 Trillion package to improve the country’s military capability.

It is also the first time that the figures for the Unprogrammed Appropriations surpassed those of the Programmed Appropriations of the Revised AFP Modernization Program, presenting a bit concerning a picture of how big-ticket military purchases will go as there are still ongoing acquisition projects that taps this budget as part of their contract. However, not everything is gloomy from this point of view, as there is still some good news regarding several projects that the Armed Forces of the Philippines are pushing.

The projects that the Armed Forces of the Philippines are actively pushing for its modernization efforts stress much in improving its territorial defense capabilities, itself a far cry to its counterinsurgency-centric mentality and focus that defines its 2000s-era mandate. While minor skirmishes still take place at this level of responsibility for the Philippine Military, the weakening of local terror and bandit groups, coupled with an ever-increasing threat in the country’s waters, clearly shifts that priority.

As the months pass by through the year 2025, there will probably be new developments and projects that will add up to the interesting discussion pool that comes as usual across the defense fora, while witnessing the expansion of the firepower capabilities of the Armed Forces of the Philippines that added updates and military hardware in consideration gets discussed. From that point on, this website will provide the additional context and information that results in an excellent knowledge-sharing environment.

At this ending note comes that the year 2024 and all the good and the bad that came with it are now at its end. And as the year 2025 comes in, so do the new challenges, opportunities, obstacles, and scenarios that will define or break the country’s resolve not only for its preservation of national sovereignty and integrity but also in ensuring that it will be self-reliant on its defense posture in the long run. 

It is a long way to go, for sure, but with the pace of development, the Philippine Military surely does successfully make it this far.

To access the documents, here are the following links below.

1. GAA 2025 - Department of National Defense Budget, under Volume I-A, Chapter XX (archived).

2. GAA 2025 - Revised AFP Modernization Program Budget, under Volume I-B, Chapter XLII (archived).

3. GAA 2025 Unprogrammed Appropriations, under Volume I-B, Chapter XLIII (archived).

(c) 2025 PDA.

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An Important Clarification on the Philippines' New Maritime Laws

The Philippine government has recently enacted two (2) pieces of legislation, of which it encompasses the country's maritime domain and its provisions, and with the details of each enacted laws come as a separate discussion on this website upon its official release on key government channels.

However, several people in one social media outlet handled by our entity aired their misguided sentiments, of which most of these people originated from across Southeast Asia. This piece gives the aim to provide the additional context and important information relating to the functions of the laws, in relation to the stipulations of the international law, specifically the United Nations Convention on the Law of the Sea or UNCLOS.

THE ENACTMENT OF MARITIME LAWS

The new maritime laws aim to solidify Philippines' claims on its Exclusive Economic Zone, putting it within the scope according to the guidelines under international law.
(c) Spratly Islands - Kalayaan Tourism, via Image Source.

Last November 8, 2024, Philippine President Ferdinand R Marcos Jr has signed two (2) very important pieces of legislation relating to the country's maritime domain, namely the Republic Act (RA) 12064 or the Philippine Maritime Zones Act and RA 12065 or the Philippine Archipelagic Sea Lanes Act. Both of which give essential provisions that govern the enforcement and coverage of the Philippine maritime domain, and also providing the guidelines for sea lanes.

Specifically, the Republic Act 12064 or the Philippine Maritime Zones Act enforces the country's maritime domain in accordance to the standards set by the United Nations Convention on the Law of the Sea or UNCLOS, comprehensively define the geographic coverage of the Philippine maritime domain and the legalistic mechanisms for the government to enforce the Philippine law on the areas encompassed within this said comprehensive coverage.

This said law also enforces of putting and recognizing the name "West Philippine Sea" into law, further binding the Philippine claims within its 200 nautical mile exclusive economic zone for its western seaboard, specifically the areas encompassing the Kalayaan Island Group or KIG and the Panatag Shoal or Bajo de Masinloc. With this emphasis on maritime jurisdiction, it aims to further ensure the rights of the Philippines as a maritime country, providing Filipinos with the right to enjoy its resources.

In the second law enacted on the same day, the Republic Act 12065 or the Philippine Archipelagic Sea Lanes Act, it emphasizes the definition of providing the country's territorial and exclusive economic zone waters that serve as 'maritime sea lanes' that foreign vessels can trespass within the country's jurisdiction, with provisions also apply on the country's air routes. There are at least three (3) sea lanes specified under this law, whereby vessels can pass to and from the West Philippine Sea through Celebes and (East) Philippine Seas.

Specifically, the sea lanes provided according to the Republic Act 12065 goes as follows - the first one traverses from the (East) Philippine Sea to the West Philippine Sea through the Balintang Channel between the Batanes and Babuyan Islands. The second one traverses from the Celebes Sea to the West Philippine Sea through the Sibutu Passage, Sulu Sea, Cuyo East Pass, and Mindoro Strait. Finally, the third one traverses once again from the Celebes Sea to the West Philippines Sea, this time via Basilan Strait, Nasubata Channel in Palawan's southern tip, Sulu Sea, and Balabac Channel.

The two (2) piece of legislation aims to provide clarity to the extent of the Philippine jurisdiction, while being affirmative to its maritime domain in accordance to the international law, specifically the ones provided by the United Nations Convention on the Law of the Sea or UNCLOS as the basis that enables this as a way that it has the full backing and compatibility to the policy and principles set by international legal bodies. As with other laws, it will come with its own Implementing Rules and Regulations that might take time to draft at the time of this writing.

As this development regarding the enactment of Philippine maritime domain laws takes time to get published on official government channels from the time this article publishes, the following detailed information aims to provide a primary approach in understanding the international laws and the mapping of the country's maritime domain, as it comes at attention lately that several Southeast Asian people are misleadingly outrageous on the reference map posted on one of our social media channels.

THE 2009 ARCHIPELAGIC BASELINES MAP

The 2009 Archipelagic Baselines Law map, as set by Republic Act 9522. NAMRIA will publish a new version under the new legislation.

On this November 8 post entry we made through X (formerly Twitter), it benignly captions the enactment of the Republic Act (RA) 12064 or the Philippine Maritime Zones Act and RA 12065 or the Philippine Archipelagic Sea Lanes Act into law by the Philippine President. Initially, this post meant to provide the necessary updated information that will probably dictate the country's policy on its national maritime domain, specifically the West Philippine Sea area, in the upcoming years. 

Unexpectedly, a horde of Malaysian and Indonesian social media users on the Elon Musk owned social media website attacked the post and misinterpret this post as 'encroachment', saying harsh words that the Philippines is following the footsteps either of the Chinese or the Israelis in "claiming" Northern parts of Indonesia and portions of Malaysia, even though that this is not the case, nor the intent made when publishing the map.

The emphasis points to the green line drawn in the map, saying that it is the Philippine 'claims' over Sabah, the northern part of Indonesia, and most of Taiwan, when in fact this only provides the theoretical line for the country's Exclusive Economic Zone or EEZ if calculating the distance of 200 nautical miles from the nearest territorial baseline of the country. Apparently, the legends of the map also presented the median line (in purple) in both northern and southern parts of the country.

To clarify this up, and for the information of any Indonesian, Malaysian, our Filipino community readers in this medium, the map provides sufficient information on the jurisdiction and definition of the Philippine maritime domain during the time the map has crafted by National Mapping and Resource Information Authority or NAMRIA in 2009-2010, with the emphasis that the green line does not define Philippine territory, and more of its Exclusive Economic Zone (West Philippine Sea included), minus the overlapping domains with Taiwan on its north, and both Malaysia and Indonesia on its South. 

In fact, the Philippines' primary mapping agency will publish the new map of the Philippines' maritime domain that fully emphasizes the West Philippine Sea area, pending the completion and official publishing of the Maritime Domain Law's Implementing Rules and Regulations or IRR that serves as the RA 12064 or the Philippine Maritime Zone Act's primary guidelines for the agencies to adhere and follow, complementing the provisions presented by the law itself.

Hence, for any Indonesian or Malaysian citizen who went outraged from the post and is now reading this article, there really isn't need much of a worry as the Philippines does not intend to so-called 'claim' the areas within the 'green line' aside from the 200 nautical mile Exclusive Economic Zone for its western and eastern seaboards, as it only serves as mapping reference that calculates the extent of the EEZ to the baseline. It might be better to understand the context of the maps first before reacting.

Now as the outrageous and senseless calls by misinformed citizens of neighboring Southeast Asian countries setting aside for the sake of this discussion, let there be some additional context on the country's archipelagic baselines, of which it will briefly delve on particularly on the discussion encompassing the Republic Act 9522 that is the basis of the map provided above, and some key notes provided in the UNCLOS and the 2016 Arbitral Tribunal that nullifies China's claim.

REPUBLIC ACT 9522, UNCLOS, AND THE 2016 AWARD

The 2016 Arbitral Tribunal decision for the West Philippine Sea served as one of multiple bases for the recent enactment of the Philippine maritime laws.
Image Source.

When the map provided by the National Mapping and Resource Information Authority or NAMRIA in 2009-2010, the Philippines did not experience any intensified aggressiveness from China's Coast Guard, Maritime Militia, and the People's Liberation Army Navy in asserting its so-called 'claims' in the West Philippine Sea, which have prompted the government of that time to submit its documentary references that support Philippines' right over Kalayaan Island Group and Panatag Shoal.

On July 12, 2016, the Permanent Court of Arbitration (PCA) at the Hague, the Netherlands, ultimately made a decision that nullifies China's nine-dash line in the West Philippine Sea and the greater South China Sea area, on the reference that it went beyond their supposedly Exclusive Economic Zone and that China's claims on historical grounds does not count as a reference under the 1983 United Nations Convention on the Law of the Sea, which they also ratified.

Added to this is the recent application of the Philippines over its extended continental shelf in the West Philippine Sea area before the United Nations, aiming to further cement the Philippines' undisputed jurisdiction over the areas like the Kalayaan Island Group, as it aims for the Philippines to have added legal basis for exploration and tapping on its maritime resources that the country will benefit economically. Of course, this does not stop countries like Vietnam from submitting their own version.

And, of course, the enactment of both the Republic Act (RA) 12064 or the Philippine Maritime Zones Act and RA 12065 or the Philippine Archipelagic Sea Lanes Act provides an additional reference for the government to get additional legal basis, grounded under international law, in asserting its rights over its Exclusive Economic Zone, particularly in the highly contested body of water named the West Philippine Sea where China illegally set up its artificial islands as power flexing.

Take note that all the emphasis on the enactment of the legalities and documentation are aiming against China's illegal claims in the West Philippine Sea area, of which this dismisses the erroneous perception on the previous map that, apparently, the Philippines also stake its claim in areas already part of Malaysia and Indonesia. In fact, this narrative only divides ASEAN unity even further that the only winner from this mess will be no other than - China.

Setting aside the overlapping areas that the Philippines will never likely to claim in this case, it is a clear resolve coming from the government to enact its laws that align more with the international law, as countries like the United States supports this move of the Philippine government, providing the needed mechanism for the agencies like the Philippine Coast Guard to enforce the Philippine laws in areas like the contested Kalayaan Island Group, being timely to its white hull acquisition spree.

As countries like the United States and Australia fully support the newly enacted maritime laws of the Philippines that cement further, not only it's legally grounded jurisdiction over the West Philippine Sea area like the Kalayaan Island Group and the Panatag Shoal, the next sub-topic of this discussion will cover the usual reaction of China on this law, along with some expected actions that attempts to counteract the well-recognized Philippine maritime laws.

CHINA AND MALAYSIAN GOVERNMENTS' REACTION ON THE MATTER

China’s so-called ‘claim’ in Panatag Shoal, Philippines.
Image Source.

As expected, the governments of both China and Malaysia will react to this newly enacted maritime domain laws of the Philippines, and will publicly denounce it as it runs contrary to its so-called ‘nine-dash line claims’ within the West Philippine Sea and the larger South China Sea area. In fact,the image provided above representing Panatag (Scarborough) Shoal with the imaginary baseline with Mandarin calligraphy written over it represents the larger neighbor’s attempt to respond to this situation.

The maritime law enactment resulted in China summoning the Philippine ambassador, conveying their full public protest as a show of full discontent by their government, as this goes preferable to the Philippines and the enacted laws' alignment to the standards set by the UNCLOS and the 2016 Arbitral Tribunal decision, which the Chinese opt not to adhere on. Going as usual are their historical arguments over the Kalayaan Island Group and the Panatag Shoal, both of which have no bearing under the UNCLOS.

Given China's disregard to the 2016 Permanent Court of Arbitration that nullifies the so-called 'nine-dash line claim' of the regional neighbor and superpower, the country instead push for its claims through aggression and violence, both of which affects the livelihood of Filipino fisherfolk that relies on the areas for a bountiful fishing, while endangering the lives of both the Philippine Navy and Philippine Coast Guard personnel that both have the legal right to patrol the country's Exclusive Economic Zone.

Despite the criticisms pointed by China to the Philippines over its new maritime laws, it is good to see that the government stands firm on its resolve to highlight and clearly marking of its maritime domain, while ensuring the preservation of the country's territorial integrity and sovereignty, along with its right under the international law to enjoy sovereign rights for its Exclusive Economic Zone, especially in tapping and exploiting maritime resources that will benefit its citizenry for economic development.

After China, it is now the Malaysian government's turn to criticize the Philippines' new maritime law, especially that they claim that it once again touches Sabah, which actually is not the intention of the Philippine government as the emphasis is once again pointed out to the country's resolve of territorial integrity over areas contested like the West Philippine Sea. Hence, like the reaction on the Chinese criticism, the Philippine government will not budge on this protest.

This come as this Southeast Asian neighbor also appeal before the United Nations body to disregard the Philippine submission on the establishment of the country's continental shelf information for the West Philippine Sea area, using Sabah as an argument once again, even though it primarily points to the Philippines' resolve to preserve its Exclusive Economic Zone, especially in areas encompassed by both Kalayaan Island Group and Panatag Shoal.

As ASEAN unity is unattainable given this circumstance, and even pointing that the aforementioned Southeast Asian government simply rides on the Chinese narrative that undermine the enacted Philippine maritime laws that align to the United Nations Convention on the Law of the Sea or UNCLOS and the 2016 Permanent Court of Arbitration, it is at best interest for the Philippines to increase cooperation with its partnership with like-minded nations, and to improve its own defense posture.

ENDING NOTE

Clearer representation of the Philippine map.

The enactment of both the Republic Act (RA) 12064 or the Philippine Maritime Zones Act and RA 12065 or the Philippine Archipelagic Sea Lanes Act count as a significant development for the ensuring the country's territorial integrity and sovereignty, while safeguarding the citizenry's right to enjoy the maritime resources that are available in the Philippine Exclusive Economic Zone waters, especially in terms of food security and the country's current energy demands.

This also aligns the country's domestic legislation and policy to the norms and standards stipulated and set by the United Nations Convention on the Law of the Sea or UNCLOS and the 2016 Permanent Rule of Arbitration, both serve as reference to nullify and invalidate the Chinese 'nine-dash line' claims over the West Philippine Sea and the larger South China Sea area. It also gives preference on the enforcement capabilities to the agencies like the Philippine Coast Guard.

It goes as timely as the Philippine Coast Guard embarks on a huge acquisition program of acquiring additional white hull vessels, forty (40) of which are smaller, thirty (30) meter vessels, and this also include the acquisition of at least five (5) additional Teresa Magbanua-class Multirole Response Vessels, all of which will help cement the country's presence in the country's Exclusive Economic Zone in the West Philippine Sea area. Add to this are offers from various shipbuilders for this endeavour.

Of course, the newly enacted Philippine laws for its maritime domain will expectedly receive some criticisms, especially involving the powers that wanted full dominion in the West Philippine Sea with its claims that are not aligned with the international law, or by some Southeast Asian neighbor that is insecure about its territorial sovereignty, even though the Philippines have its current legislation not aimed against overlapping domains, but to cement its territorial integrity according to international law.

The map presented above gives e clearer definition of the scope and coverage of the Philippine maritime domain, especially the areas that it considers its Exclusive Economic Zone, such as its western and eastern seaboard. It encompasses both the Kalayaan Island Group and Panatag Shoal, both of which are clearly within the Philippine Exclusive Economic Zone, and the Philippine (Benham) Rise in the east, of which this portion entitles to the Philippines' extended continental shelf.

As the Philippines affirms the passage of its maritime laws that has the backing of countries like the United States, this will only solidify the resolve of further solidifying its territorial integrity and national sovereignty even further, particularly when the Department of National Defense' Comprehensive Archipelagic Defense Concept or CADC comes into play. This also goes with the country's desire to push added cooperation with like-minded allies and partners with this concept.

To end this note, this writeup gives an important clarification on the overview of the new maritime laws that the Philippines is pushing, although there will go a follow-up discussion on this matter upon delving deeper into both the Republic Act 12064 and 12065 through a separate entry. 

It will be nonsense to think that the Philippine government provokes neighbors into conflict through this legislation, especially given that it does not want war, but it will not back down, and it has an absolute right to preserve and defend its national territory that is rightfully part of the country.

(c) 2024 PDA.

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