The approved national budget of nearly P6 trillion for next year will accelerate the country’s economic growth amid looming drought and high inflation, the country’s economic team stressed.

President Ferdinand R. Marcos Jr. has signed into law the General Appropriations Act of 2024 which will allot a total of P5.768 trillion for the country’s budget next year.

This budget, which is 9.5 percent higher than the P5.268 trillion budget for 2023, is expected to spur government spending which mainly drove the third quarter’s gross domestic product (GDP) growth to 5.9 percent from the 0.7 percent contraction in the previous quarter.

During the first three quarters, the economy averaged 5.5 percent, which was above pre-pandemic levels.

National Economic and Development Authority Secretary Arsenio M. Balisacan said that the budget will ensure the seamless delivery of government programs and services.

Most of the budget will go to the social services sector, which is seen as vital in preparing for the El Niño phenomenon next year.

Balisacan earlier said that the government, in aid of the Department of Social Welfare and Development plans to accelerate the distribution of food stamps to overcome possible shortages due to persisting drought expected to last until second quarter of next year.

Among the agencies, the Department of Education was allocated the highest budget of P924.7 billion, followed by the Department of Public Works and Highways with P822.2 billion.

“Efficiently utilizing our budget and implementing our planned programs are crucial for us to achieve our socioeconomic goals and realize resilient and sustainable growth for the country, and better lives for the Filipino people,” he said.

“The year 2023 is all about laying the groundwork and establishing the foundation to achieve our development goals,” he added.

For Department of Finance Secretary Benjamin E. Diokno, the budget aligns with the Marcos administration’s goal for the medium term such as higher investments in public infrastructures.

“With this budget, we are well-equipped to continue the pursuit of economic transformation achieved under the FY 2023 National Budget and further accelerate our push towards realizing the socio-economic development goals of the Marcos, Jr. administration,” he said.

“The 2024 National Budget was carefully optimized to drive the country towards a future of inclusivity and sustainability, ensuring that every peso is used efficiently to benefit every Filipino,” he further stated.

Likewise, Department of Budget and Management Secretary Amenah F. Pangandaman noted that the newly signed law will fulfill the country’s socioeconomic aspirations.

"We strongly believe that the 2024 General Appropriations Act will facilitate the fulfillment of the administration's 2022-2028 Medium-Term Fiscal Framework and the 8-Point Socioeconomic Agenda, where no Filipino will be left behind," she said.

The budget secretary also thanked the legislative departments for scrutinizing and approving the 2024 budget.

"We also take this opportunity to acknowledge the tireless efforts of the members of both chambers of Congress, under the leadership of Senate President Juan Miguel F. Zubiri and House Speaker Martin G. Romualdez, for their diligent scrutiny and subsequent approval of the proposed national budget for 2024," she stated.

The 2024 budget is seen to boost the economy to attain at least the lower end of the 6.5 to 7.5 percent target, which was tempered from the previous range of 6.5 to 8 percent.

Meanwhile, the 6.5 to 8 percent growth assumption was retained for 2025 to 2028.