The Marcos administration has raised its budget deficit ceilings for the next five years to provide the necessary financial leeway to support the government's projects and programs.

Based on the latest revenue and spending outlook from the Development Budget Coordination Committee (DBCC), the Marcos administration now projects a fiscal deficit of 3.7 percent of the economy by the end of its term in 2028. 

This revised budget deficit-to-gross domestic product (GDP) ratio represents an increase from the previous assumption of 3.0 percent.

“This will provide the necessary fiscal space to support the government’s spending plan to invest more heavily in infrastructure and human capital development and provide adequate and well-targeted social services,” the DBCC said.

Under the new DBCC program, the Marcos administration has stated that the budget deficit is expected to reach 5.6 percent this year, up from the previously projected 5.1 percent.

In terms of nominal value, this equates to P1.484 trillion, with disbursements expected to reach P5.754 trillion and revenues amounting to P4.267 trillion.

For 2025, the national government has raised its fiscal deficit ceiling to 5.2 percent from 4.1 percent, totaling P1.491 trillion. 

Expenditures for the next year are projected to reach P6.074 trillion, with revenues expected at P4.583 trillion.

The budget deficit ratio is forecasted to decrease to 4.7 percent by 2026, although this is higher than the DBCC's previous projection of 3.5 percent.

The deficit ratio for that year is estimated at a shortfall of 1.477 billion, with revenues of P4.956 trillion compared to expenditures of P6.433 trillion.

By 2027, the Marcos administration projects that the government's budget deficit will stand at 4.1 percent or P1.399 trillion. This new budget deficit ceiling is also higher than the original 3.2 percent. 

Revenues of the national government in 2027 are expected to reach P5.488 trillion, while expenditures are projected to be around P6.887 trillion.

Ultimately, the government's budget deficit is expected to be 3.7 percent by the time President Marcos steps down from Malacañang.

In nominal terms, this is be around P1.372 trillion budget deficit. Expenditures are set at P7.45 trillion while revenues at P6.078 trillion during the last year of the Marcos administration.

In nominal figures, this translates to a budget deficit of approximately P1.372 trillion. 

Expenditures are budgeted at P7.45 trillion, with revenues projected at P6.078 trillion during the final year of the Marcos administration.