The Highlights of the House Deliberation for the Department of National Defense' 2025 Budget

The Department of National Defense, so as with the other departments within the executive branch, has presented its stance regarding its budgetary needs under the 2025 General Appropriations Bill, which will eventually be the 2025 General Appropriations Act.

This entry only provides the highlights on the recently concluded proceedings for the Defense Department's budgetary requirements.

AT A GLANCE

Projects presented in the image are among those mentioned in the defense budget deliberation.

The Department of National Defense's budget deliberation come as its sub-units like the Armed Forces of the Philippines are currently undertaking its modernization push, which basically means additional capacity-building tools and related requirements, with an aim to improve further the country's defense deterrence, particularly in the light of an ever-increasing tensions in the Indo-Pacific region such as in the areas like in the West Philippine Sea.

This means that the budget for each branch of the Armed Forces of the Philippines in the year 2025 will come at around 124.991 Billion for the Philippine Army, 49.088 Billion for the Philippine Navy, and 49.800 for the Philippine Air Force, all of which on its total allotments from Personnel Services (PS) down to Maintenance and Other Operating Expenses (MOOE) and smaller projects earmarked under the Capital Outlay (CO). This is still different from the budget provided for the Revised AFP Modernization Program.

Now speaking of the RAFPMP or the Revised AFP Modernization Program, the National Expenditure Program or NEP for the year 2025 has the budget provided for the AFP's material acquisition projects at around Php 50 Billion in programmed appropriations and at least Php 25 Billion in un-programmed appropriations, with a total allotment for the Revised AFP Modernization Program earmarked at around Php 75 Billion total, or at least Php 25 Billion more compared to the 2024 RAFPMP budget.

Presenting the budget before the plenary within the chamber of the House of Representatives is Representative Jose Aquino II, who is the primary sponsor of the Department of National Defense' budget for the year 2025 as the legislature pushes the enactment of the 2025 General Appropriations Act before the year ends. A separate discussion for the defense budget in-detail will come separately from this article, which focuses more on the house budget deliberation highlights.

Totaling the overall budget for the different units under the Department of National Defense, including those belonging to the Office of Civil Defense (OCD), Government Arsenal, and others, is at Php 254.155 Billion. Adding up for the Revised AFP Modernization budget of Php 75 Billion, the figures will add up to at least Php 329 Billion. Ultimately, the overall figure presented as currently reported is at around Php 344.426 Billion.

CRITICISMS OF THE MAKABAYAN BLOC

One criticism pointed is with bilateral exercises the Philippines have with the United States.

Budget deliberation will not be complete without the interpellations that are usually done by the minority bloc, scrutinizing the detail, the numbers, and the purpose of each budget items that a department within the executive branch of the government presented, especially the figures already provided under the National Expenditure Program or NEP as crafted by the Development Budget Coordination Committee or DBCC, again under the executive branch.

Going through the details of the deliberation as provided through this video link here (timestamp starting at around 11:45 minutes), most of the criticisms dwell much to the average arguments of the bloc against the Visiting Forces Agreement and the annually held Balikatan Exercises, as aired out by the likes of ACT-Teachers party-list representative France Castro (timestamp at 17:00 minutes), although there are also arguments against the Revised AFP Modernization Program.

Regarding the Joint Exercise Balikatan, the criticisms pointed on its impact to the communities where the activities taking place, whereby daily activities get suspended as the conduct of the live fire exercise and other matters taking place. Another thing pointed out is on the criticisms involving the military sites under the Enhanced Defense Cooperation Agreement or EDCA between the Philippines and the United States, saying that it might undermine the country's own sovereignty without taking China into account.

As for the Revised AFP Modernization Program, they pointed out the details regarding the Un programmed Appropriations, of which the list of projects earmarked for the 2025 General Appropriations Bill for this portion of the Revised AFP Modernization Program will come as this article goes on. 

There are at least eleven (11) separate acquisition programs that primarily delve into the upgrades of existing military hardware, increase of existing units of military hardware, and outright purchase of new ones.

In the following list, each detail will come according to the information already provided through this website, and also coming from multiple defense sources that will help grasp the plans and programs that the Department of National Defense have in lining up for the year 2025, using the un-programmed appropriations of the budget. 

Take note that this goes differently to the 2025 programmed appropriations of the Revised AFP Modernization Program, in which it will help fund ongoing projects under the Multi-year Contracting Authority or MYCA and priority projects such as the Multi-role Fighter Jet Acquisition Project.

EARMARKED PROJECTS

HD Hyundai Heavy Industries offered the HDF-3500 frigate design for the Batch 2 Frigate Acquisition Project (full complement) of the Philippine Navy.
From Frances Mangosing, X (formerly Twitter).

The highly important highlight of the budget deliberation for the Department of National Defense for the 2025 General Appropriations Bill is the list of acquisition projects earmarked for the Revised Armed Forces of the Philippines Modernization Program or RAFPMP, particularly to the un-programmed appropriations of the budget amounting to Php 25 Billion. Take note that the appropriation has uncertain implementation, as the funding sources depend primarily on the remaining availability throughout the fiscal year.

There are at least eleven (11) key earmarked projects, plans, and programs that are earmarked to push if the funding becomes available for the un-programmed appropriations of the government budget, ranging from upgrading of existing platforms that are currently serving the different branches within the Armed Forces of the Philippines, to the new materials-based acquisitions project that helps increase the current firepower and military capabilities of service branches like the Philippine Navy and Air Force.

As already discussed the overview of this topic on our Facebook page, with the archived version link right here, this portion will provide a more comprehensive detail to delve on, with the following information that is barely touched on the original social media post provided.

1. AFP Electronic Warfare System

The electronic warfare system under this scope also covers the cyber systems concept of the Armed Forces of the Philippines, particularly in aspects covering interconnectivity of systems and its usage as an offensive weapon that can disrupt and deny its use by opposition actors in an event of a conflict. 

As the modern warfare environment now allowing the use of sophisticated informations technology medium and electronics signaling that effectively sends and receives communication for a real-time coordination of military movements, different defense vendors across the globe offer a wide spectrum of system suites that might help protect critical electronic and cyber systems of the Philippine Armed Forces, while tapping this spectrum not only to disrupt the opposition actors of its usage but also to gather critical information through the term coined as "Electronic Intelligence or ELINT". 

There are examples of pushing this technological capability integration into the Armed Forces of Philippines' wide array of what count as electronic warfare tools, such as with the Philippine Air Force's Hermes 900 Unmanned Aerial Systems.

As of this time this article published, there are no specific details regarding this acquisition project yet. But with its inclusion into the list of important earmarked projects for the 2025 un-programmed appropriations of the Revised AFP Modernization Program underscores the Department of National Defense's need to improve this capability, both to secure its cyber and electronic networks while using the offensive tools to undermine the country's potential adversaries.

2 and 3. Frigate and Corvette Weapons and Sensor Systems Upgrade

Combining the second and third list, this calls for the acquisition projects that will address the improvement of capabilities of the Philippine Navy's currently operational vessels under the Offshore Combat Force, particularly the current Jose Rizal-class Frigates, BRP Conrado Yap (PS-39), and possibly the future Miguel Malvar-class Frigates, of which count by some as Corvettes under the Corvette Acquisition Project, even though it has the FF nomenclature.

The likely area of development that this upgrade will focus and address on is with the vessel's subcomponents that count as Fitted For, But Not With or FFBNW provisions. This refers to capabilities and subcomponents that are not available with the vessels during the time the contract has signed and the vessels start construction from steel cutting to the delivery, citing limited budgetary concerns as the primary reason of resorting to this arrangement.

For the Jose Rizal-class Frigates, it currently lacks the Vertical Launch System or VLS cell mounts and Close-in Weapons System or CIWS for expanded air defense coverage to protect the ship against incoming aerial threats, and the Towed Array Sonar that serve as a platform fitted with hydrophone, enabling a passive sonar activity that receives any submarine signatures and other faint seismic movements in the sea that is better than the capabilities that came with hull-mounted sonar onboard the ship.

As for the Corvette Acquisition Project, the one that produces the Miguel Malvar-class Frigates, it has the similar lacking capability on submarine warfare as it has the Towed Array Sonar coming as FFBNW provisions, although the systems upgrade aimed by the acquisition project funded under the un-programmed appropriations might enable the vessels to get the added capabilities it deserves to get, aiming at conducting anti-air and anti-submarine warfare capabilities effectively using these naval platforms.

3. Ground-Based Air Defense System (GBADS) Basing Support Development

Currently, the Philippine Air Force possesses several batteries of the Israeli-made Spyder-MR Ground-Based Air Defense System, provided accordingly by Rafael Advanced Systems Limited for the Philippine Air Force's acquisition project that bears this similar name. As usual, this project helps provide sufficient air defense coverage as part of implementing the country's air defense identification zone.

A basing support development provides sufficient mechanisms that ensure the overall operability of the air service branch's ground based air defense systems, especially in ensuring its serviceability and providing its overall readiness that maintenance, repair and operational requirements are always complete, lengthening the service life of each vehicle units within an air defense missile battery.

This development is just one among multiple projects undertaken that ensures additional support and enhanced serviceability of the Philippine Air Force's ground-based air defense systems, with others being the bunker and missile storage facilities in areas like in Basa Air Base, with support from Israel's Rafael Advanced Systems Limited as posted by the Israeli Embassy to the Philippines showing the improvement of bilateral defense ties of both countries.

Just as presented in the DOTMLPF concept, basing support facilities always play a crucial role that as similar to the personnel that operates and maintains both the facility and the purchased military hardware, along with importance stressed by buying sophisticated military hardware and to adhere to the doctrines in both decision-making on acquisition and its usage according to established military standards.

4. FA-50 Systems Upgrade

Since its entry into active duty within the Philippine Air Force's 5th Fighter Wing, the FA-50PH light fighter trainer aircraft bought from Korea Aerospace Industries will come with continuous support for its maintenance, repair, and operational requirements. This also comes with upgrades that the South Korean has in offering to this type of aircraft.

As discussed in an article published in 2019 and as presented by Korea Aerospace Industries in a Philippine Air Force symposium in 2023, there really is a clear interest from the leadership to improve the capabilities of its existing FA-50PH aircraft, particularly to the Block 20 configuration that the South Korean aerospace company is currently work into.

Going through the discussion, the FA-50PH will probably receive additional upgrades on top of the Block 20, preferably up to the capabilities introduced in Blocks 50 to 70 configuration, enabling the Philippine Air Force to operate a light and cost-effective multi-role fighter aircraft, although its firepower and loitering capacity is still lighter compared to the candidates of the Philippine Air Force's Multi-role Fighter Acquisition Project such as the F-16 Block 70/72 Viper and SAAB JAS-39 Gripen E variants.

As with the upgrades that the existing FA-50PH light fighter trainer aircraft of the Philippine Air Force likely receives, there is another project, still included in this list that involves the FA-50s, except that this time, it refers to the force multiplier component that will probably increase the numbers in the air service branch's inventory.

5. Additional FA-50 Aircraft

While this information comes nothing new, as the Philippine Air Force already expressed an interest in securing at least an additional squadron or twelve (12) units of this type of aircraft on its inventory, it is in this plenary session that the air service branch's intent of purchasing additional FA-50s for its squadron of aircraft becomes a bit more official. 

This come as the manufacturer, Korea Aerospace Industries or KAI, presented its marketing for the Philippine Air Force to secure at least two (2) more squadrons, or twenty-four (24) units of FA-50s, enabling the air service branch to operate and maintain at least thirty-six (36) of such light fighter trainer aircraft on its inventory, typically in tandem with the upcoming multi-role fighter jets.

To clarify things up, this project is clearly not to replace the ongoing multi-role fighter jet acquisition project of the Philippine Air Force, but this likely will complement the said priority upgrade, as the acquisition of additional FA-50s falls under the project name 'Additional Strike Attack Aircraft/Lead-In Fighter Trainer Acquisition Project' or 'SAA/LIFT Acquisition Project.' 

The difference between this and the MRF project, along with the project's inclusion in the 2025 un-programmed appropriations of the budget for the Revised AFP Modernization Program, stresses the Department of National Defense's desire to improve the Philippine Air Force's capabilities, particularly on its implementation of the Philippine Air Defense Identification Zone or PADIZ. The following project will involve a key acquisition program of the Philippine Navy.

6. Batch II Frigate Acquisition Program (Full Complement)

Among those mentioned on the list is a new acquisition project intended to boost not only the Philippine Navy's firepower capabilities but also the numbers required to fill in the naval service branch's requirements for sea deployment. Apparently, this new iteration of the Frigate Acquisition Project comes differently to the first one that now has the Jose Rizal-class Frigates of the Philippine Navy.

Just in the recently concluded Asian Defense And Security Exhibition or ADAS 2024 in Pasay City's World Trade Center convention from September 25 to 27, 2024, the shipbuilder that made the Jose Rizal-class Frigates presented its tender for this new frigate project pushed by the Philippine Navy (see image above). The design presented shows a resemblance to the Miguel Malvar-class Frigates under the Philippine Navy's Corvette Acquisition Project.

With the design named as HDF-3500, HD Hyundai Heavy Industries presented what sees to be a vessel based on the initial draft specifications of the Philippine Navy for this project, as this vessel bear 3,500 tons, hull size of 129 meters long, and onboard weapons subcomponent being almost similar to the Miguel Malvar class with having a 4x2 anti-ship missile canisters, 16x cell Vertical Launch System (VLS), a single Close-In Weapons System (CIWS), 76mm main gun, and twin triple torpedo launchers.

While HD Hyundai Heavy Industries has an edge with its partnership experience with the Philippine Navy, other shipbuilders like Navantia also presented their designs and apparently come with quirks that are attractive for the Spanish shipbuilder to provide as a package under this acquisition project. Elaborative details regarding the Batch II Frigate Acquisition Program will find its way as a separate discussion and writeup within this website.

7. Additional Air Defense Surveillance Radar (ADSR) System with Basing Support

Aside from fighter aircraft and ground-based air defense systems, surveillance radars also play a crucial role in implementing a country's air defense identification zone or ADIZ, whereby these sensors' ability to monitor and detect incoming threats from the air into the country's airspace gives real opportune time for fighter aircraft and ground-based air defense systems to intercept it and eliminate the threat whenever it comes necessary.

For the Philippine Air Force's current arrangement, its air surveillance radar option primarily compose of Israel's ELM-2288 AD-STAR from Elta under the first phase of the radar project, while Japan's J/FPS-3ME fixed air defense surveillance radars and J/TPS-P14ME mobile radar, both produced by Mitsubishi Electric, itself purchased under the second phase of the radar project. The 2025 earmarked project is likely slated for the third and final phase of this radar project.

For context, both the first phase and second phase of the radar project already provide significant coverage for the monitoring and safekeeping of the country's airspace, with the third phase of this project slated under 2025 Revised AFP Modernization Program under un-programmed appropriations providing a complete 100% coverage for the Philippine Air Defense Identification Zone's full materialization. This renders ensured protection and detection of intrusions as part of the Philippine Air Force mandate.

There are no candidates for this project yet, but there is a likelihood that the aforementioned air defense radar suites originated from both Israel and Japan may find once again as an option for this third phase of the radar project. Also, the repeat orders for military hardware under the New Government Procurement Act or the Republic Act 12009 now enable the leadership to simply securing already-purchased similar platforms for this project to push through.

8. 155mm Howitzer, Precision-Guided Munition (PGM) Ready

This project calls for the acquisition of an additional 155mm howitzers, likely to complement existing platforms within the Philippine Army. This service branch currently operates 155mm howitzer platforms, both towed and self-propelled. There is no mention of which type of such platforms might get chosen, although the mere inclusion of this project on the list under un-programmed appropriations gives intention to add the artillery pieces in use.

Currently, the Philippine Army operates both the Soltam M71 155mm towed howitzer, the M114 155mm towed howitzer, and the ATMOS 2000 155mm self-propelled howitzer. Both the Soltam M71 and the ATMOS 2000 have originated from Israel's defense industries, with Soltam producing the towed howitzer and Elbit Systems producing the ATMOS 2000 howitzer platform. The M114 howitzer originated from the United States, and also the oldest artillery piece in the army that fires 155mm ammunition.

Since the Israeli-made howitzers are fruits of recently accomplished acquisition projects, there is a likelihood that the Philippine Army might consider either the Soltam M71 or the ATMOS 2000 howitzer, with the latter having an advantage of mobility given that being a self-propelled howitzer, the Elbit Systems product has the capability of partaking a shoot and scoot strategy, whereby it fires its rounds and gets deployed to another location immediately to ensure increased survivability.

Hence, it is just appropriate to add more artillery pieces that the Philippine Army sees useful not only to pulverize and eliminate targets of insurgency in context but also to have added coastal effectiveness as these platforms will come with compatibility in firing precision-guided munition that ensures maximum accuracy and output of destruction against a desirable target that poses a threat to the country's national security.

9. Integrated Short-Range Air Defense (SHORADS)

Aside from medium range air defense solutions like the Spyder-MR air defense system that the Philippine Air Force currently have, another acquisition project that the Department of National Defense focus on is with the purchase of short-range air defense systems or SHORADS, of which this include the likes of the Man-Portable Air Defense Systems or MANPADS.

One of such short-range air defense platforms is the MBDA Mistral air defense system, which is currently the mainstay air defense platform onboard the Jose Rizal-class Frigates since dedicated air defense components like a Close-In Weapons System or CIWS and Vertical Launch System or VLS suites count as a separate purchase that count as Fitted For, But Not With or FFBNW at the time the frigates are in production.

Increasing the number of integrated short-range air defense systems that the Armed Forces of the Philippines highly considering under this list of projects under the un-programmed appropriations helps enhance this spectrum of air defense platform, considering that this layer of air defense still count as essential particularly against low-flying aircraft or a helicopter that belonging to the opposition forces (OPFOR).

Like the 155mm Howitzer, there are no specifics regarding this project at the time of this writing, although future discussions will help shed additional light to the development and specific details regarding the project's size, numbers, specifications, and other relevant details that have come as usual sub-topics that are regular information as discussed on this website.

10. Landing Craft Unit (LCU)

Completing the list is the acquisition plan to purchase landing craft units, of which this refers to small amphibious platform that have come in tandem with larger amphibious vessels like a Landing Platform Dock or LPD. For context, the Philippine Navy embarks on a project that adds two (2) more such amphibious platforms over the existing two (2) that currently comprise the Tarlac-class Landing Docks. The project name for the additional large amphibious platform is the Landing Docks Acquisition Project.

Referring to the linked article on the Landing Docks Acquisition Project, one highlighted part that goes correlated to this project is that each Landing Platform Dock only comes with at least one (1) landing craft unit or LCU per vessel, as opposed to the Tarlac-class Landing Platform Dock's two (2) landing craft units per vessel when this project, named the Strategic Sealift Vessel or SSV Acquisition Project, has materialized. This project for landing craft units basically resolves this issue that counts as an FFBNW item.

This means that the current Landing Docks Acquisition Project only comes with an overall sum of two (2) landing craft unit, as opposed to the original Strategic Sealift Vessel Acquisition or SSV Acquisition Project's four (4) landing craft units. Basically, this project provides at least another two (2) landing craft units as a separate purchase that will cover up any missing capabilities that the upcoming additional Landing Platform Docks that the Philippine Navy gets.

As the additional Landing Platform Docks or LPDs are currently in production by the Indonesian shipbuilder PT PAL Persero, it only makes sense that this same shipbuilder will produce the additional two (2) landing craft units, whereby the ending result will mean a completely capable large amphibious vessels together with a pair of landing craft units each vessel that can transport both troops and military equipment from ship to shore.

SENATE'S SUPPORT

Currently, the budget for the Revised AFP Modernization Program has allotted funds on ongoing projects under the Multi-Year Contracting Authority or MYCA, such as the Miguel Malvar-class frigates.
File Image.

In a Senate Finance Committee hearing that took place on September 24, 2024, the senators provided support and urged the prioritization of the Revised Armed Forces of the Philippines (RAFPMP) Modernization Program, especially in giving it sufficient budget given the increasing assertiveness by Chinese forces in heated areas like those in the West Philippine Sea.

This comes as the budget allotted for the Revised AFP Modernization Program for the year 2025 only has a sum amounting to Php75 Billion, Php 50 Billion of which counts under the programmed appropriations and the remaining Php25 Billion come as un-programmed appropriations. Take note that the projects under un-programmed appropriations only get materialized once there is a guaranteed availability of funds for its continuation.

For context, the Department of National Defense requested at around Php245 Billion for the Revised AFP Modernization Program, of which this gets reduced to only Php75 Billion by the time the National Expenditure Program or NEP for the year 2025 has released. Still, the budget saw a highly significant increase from the 2024 General Appropriations Act allotment for the Revised AFP Modernization Program, as the current budget comes at around Php50 Billion Pesos, of which Php10 Billion is under un-programmed appropriations.

One proposal raised is to get the Php25 Billion allotment under un-programmed appropriations re-aligned to programmed appropriations, which basically means guaranteed availability of funds for all the earmarked budget while highlighting the priority needed in materializing most acquisition programs under the Revised AFP Modernization in 2025 as the Philippine defense capability requires catching-up to its neighboring contemporaries.

In the end, it remains to see how this proposal goes, but it comes with a hope that the urgency and priority required for the Revised AFP Modernization Project now gets recognition, and all it takes now is to have that acknowledgement of the concerns put into consideration, and eventually finds its way to the final version of what will be the 2025 General Appropriations Act.

LOOKING FORWARD

Multi-role Fighter Jets are actually a priority under the 2025 budget for the Revised AFP Modernization Program.
Contributor Photo

In the discussion regarding defense budgeting for big-ticket projects like the ones under the Revised AFP Modernization Project, it always highlights the shortcomings of pooling up necessary resources to fund the capacity-building initiatives of the Department of National Defense, especially now that its leadership now resorts to some creative financing schemes, which now involves seeking support from the private sector, or to deal with weapons manufacturer with soft loan schemes or similar arrangements.

Resorting to such an approach not only helps decrease the defense department's reliance on the release of the annual budget, but also provides additional avenues that enable it to have multiple options that help fund various acquisition projects under the Revised AFP Modernization Program, while also having added flexibility on the financing schemes provided that fully gives benefit to both the government's push for external defense and in ensuring its fiscal stability in the upcoming years.

The direct and blunt answer from the Department of National Defense before the legislators of both the House of Representatives and Senate has given acknowledgement in stressing the need for prioritizing the projects under the Revised AFP Modernization Program, particularly the list of programs under the 2025 defense budget's un-programmed appropriations. Items such as additional frigates and FA-50PH underscore the defense department's urgency for capacity-building under the Comprehensive Archipelagic Defense Concept or CADC.

Currently, the Php50 Billion budget for the Revised AFP Modernization Program helps address the ongoing projects that the Department of National Defense has under the Multi-Year Contracting Authority or MYCA, of which includes the projects that are still ongoing at the time of this writing such as the Landing Docks from Indonesia, both the Offshore Patrol Vessels and the Miguel Malvar-class Frigates from South Korea, and three (3) C-130J-30 aircraft from the United States. 

As pointed out, the year 2025 might provide a promising stature for funding the Revised AFP Modernization Program, whereby the aforementioned projects under the un-programmed appropriations, along with priority projects under programmed appropriations such as the multi-role fighter jets for the Philippine Air Force, might eventually get materialized as intended. 

Still, as budget shortcomings now acknowledged, perhaps a justifiable increase in budget for the Revised AFP Modernization Program to desirable numbers might finally give justice not only to the needs of the defense department but also into addressing the need into enhancing the country's national security and preserving its sovereignty and interest.

(c) 2024 PDA.

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