The Philippines plans to allocate 50 billion pesos ($875 million) in 2025 to continue the modernization of its Armed Forces, reflecting a significant increase in defense spending amid escalating regional tensions, particularly with China.

According to Representative Johnny Pimentel, this allocation represents a 25% increase-10 billion pesos ($175 million)-from the previous year's budget for acquiring and upgrading military hardware and systems, as reported by Xinhua news agency. This enhancement in defense funding underscores the Philippines' commitment to bolstering its military capabilities.

The increased budget is part of the broader 2025 national expenditure program, which the Department of Budget and Management (DBM) recently submitted to the House of Representatives for review. The proposed budget, totaling 6.352 trillion pesos ($111 billion), accounts for 22% of the country's gross domestic product (GDP) and reflects a 10.1% increase from the 2024 budget.

The decision to ramp up military spending comes at a time when the Philippines is navigating increasingly complex security challenges in the region, particularly in the South China Sea, where China's growing assertiveness has raised concerns. The modernization of the Armed Forces of the Philippines (AFP) is seen as a crucial step in enhancing the country's defense posture and maintaining sovereignty in contested waters.

China's influence in the region has prompted several Southeast Asian nations, including the Philippines, to reassess their defense strategies. The increased budget allocation highlights Manila's recognition of the need to strengthen its military capabilities in response to potential threats.

The proposed 2025 budget will undergo scrutiny by both the House of Representatives and the Senate before it is signed into law by Philippine President Ferdinand Romualdez Marcos. As the Philippines moves forward with its military modernization, the broader geopolitical implications of this investment will be closely watched, particularly in the context of its relations with China and the United States.