Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman has highlighted last year’s budget deficit, which narrowed more than the agency had expected, reflecting improved fiscal management and revenue performance.
“This is the lowest rate recorded since the pandemic started in 2020,” Pangandaman said in a Feb. 28 statement, noting that it went down to ₱1.506 trillion, or 5.7 percent of the country’s gross domestic product (GDP).
The Bureau of the Treasury (BTr) earlier reported that the national government’s fiscal deficit narrowed slightly from the 2023 level, despite it breaching the programmed gap of ₱1.484 trillion for 2024.
“It is a marked improvement compared to the 6.2 percent deficit recorded in 2023, given the better-than-expected revenue and spending performance,” Pangandaman said.
“This is also well within the fiscal outlook of the Development Budget Coordination Committee (DBCC) at our last meeting,” the Budget chief added. She attributed this improvement to the present administration and its economic managers.
She said this performance reflects the country’s progress under its socioeconomic agenda, reinforcing the Philippines’ position as a “dynamic emerging economy in the Asia-Pacific region.”
As the DBCC aims to gradually reduce the budget deficit to 3.7 percent by 2028, or three years from now, Pangandaman said the country’s economic managers “remain committed to achieving growth-enhancing fiscal consolidation while prioritizing long-term investments in key sectors such as infrastructure, education, and healthcare to sustain our economic recovery.”
Pangandaman, who also chairs the DBCC, assured that these efforts will help in creating more jobs, raising incomes, and reducing poverty.
The Marcos administration’s spending grew by over 11 percent from 2023, exceeding the target by 2.9 percent. According to the DBM, the increase was mainly due to faster implementation of health and social protection programs, higher salaries for eligible government employees, and strong infrastructure investments by the Department of Public Works and Highways (DPWH).
Meanwhile, government revenues for 2024 totaled ₱4.419 trillion, accounting for 16.7 percent of GDP and marking a 15.6 percent increase from 2023.
Last year’s tax and non-tax take also surpassed the revenue target by 3.5 percent, “allowing for greater fiscal consolidation,” said Pangandaman.