Recto: PH fiscal deficit P765.5B, manageable at 5.7%

Finance Secretary Ralph Recto stated on Monday that the Philippines' fiscal deficit remains manageable at P765.5 billion for the first half of 2025.

Recto presented the Department of Finance's report to the House of Representatives, noting the deficit-to-GDP ratio is currently at 5.7%, with a full-year target of 5.5%.

Projected revenue for 2025 is expected to reach P4.52 trillion, marking a 2.29% increase from 2024, and is anticipated to grow annually by 7-10% over the next five years.

Recto highlighted additional revenue sources such as digital services VAT and the Capital Markets Efficiency Promotion Act, along with higher collections from mining reforms.

With increased revenues and tighter spending, Recto projects the fiscal deficit could drop from 8.6% in 2021 to 3.1% by 2030, while debt remains sustainable at 58% of GDP.