Philippines Proposes 8% Increase in Defence Budget

16 September 2022

Janes Defence Budgets forecasts that the Philippines' military expenditure will grow to approximately USD10 billion by the end of the decade (infographic : Jane's)

The Philippine government has proposed a 2023 defence budget of PHP240.29 billion (USD4.28 billion). According to budgetary documents, the figure represents an 8% increase over the PHP221.60 billion allocation in 2022.

The new core defence budget will also receive additional appropriations, including funding through the long-running Revised Armed Forces of the Philippines (AFP) Modernization Program (RAFPMP).

According to documents issued by the Department of Budget and Management (DBM), the core defence budget for 2023 – the first under President Ferdinand ‘Bongbong' Marcos who assumed office in late June – provides PHP138.4 billion for personnel expenses, PHP58.6 billion for maintenance and other operating expenses, and PHP43.3 billion for capital outlay outside the RAFPMP.

In total, the Philippine Army (PA) will receive PHP109.8 billion in 2023, or 46% of the core defence budget. The Philippine Air Force (PAF) has been allocated PHP35.4 billion (14.7%), while the Philippine Navy (PN) will receive PHP34.7 billion (14.4%). The majority of the remainder has been allocated for civilian defence, veterans' health support, and the Government Arsenal, which produces firearms and ammunition for the AFP.

In terms of military modernisation, the principal funding mechanism for the Philippines is the RAFPMP, which was signed into law in December 2012. The programme has a focus on building capability to address two threats − internal insurgency, primarily in the south of the country, and territorial disputes in the South China Sea.

(Jane's)