Budget deficit narrows but exceeds target

The national government's budget deficit narrowed year-on-year in 2024 but still exceeded its target by 1.48%, according to the Bureau of the Treasury.

Revenue collection increased by 15.56% to P7.3 trillion, driven primarily by higher tax revenues and windfall collections from public-private partnerships and government transfers.

Government expenditures rose by 11.04% to P5.925 trillion, largely due to infrastructure spending and social protection programs.

Despite the overall deficit exceeding its target, the deficit-to-GDP ratio improved from 6.2% in 2023 to 5.7%, marking a step towards fiscal consolidation.

Economists noted that while higher prices and election-related spending contributed to increased expenditures, the narrowing of the deficit remains significant progress.