Philippines records lowest budget deficit since pandemic at 5.7%

Budget Secretary Amenah Pangandaman announced a narrower-than-expected budget deficit of 5.7% in 2024, marking the lowest rate since the pandemic began.

The improvement from the previous year's 6.22% deficit is attributed to better revenue growth and spending performance, reflecting improved fiscal management under President Ferdinand R. Marcos Jr.'s administration.

Government spending increased by over 11%, largely due to health programs, salary hikes for government employees, and strong infrastructure investments.

Revenues for 2024 reached PHP4.419 trillion or 16.72% of GDP, surpassing targets and allowing greater fiscal consolidation.

The DBCC aims to gradually reduce the budget deficit to 3.7% by 2028, underscoring the Philippines' position as a dynamic emerging economy in the Asia-Pacific region.

Pangandaman emphasized that these efforts will help create more jobs, raise incomes, and reduce poverty while prioritizing long-term investments in infrastructure, education, and healthcare.