MANILA, Philippines — Budget Secretary Amenah Pangandaman hailed the decline in the country’s budget deficit to 5.7 percent of gross domestic product in 2024 from 6.2 percent of GDP in 2023, marking the lowest level since the pandemic.
In a statement, Pangandaman said the budget deficit, which amounted to P1.506 trillion last year, was lower than expected, reflecting stronger revenue collection alongside more effective government spending.
“This is the lowest rate recorded since the pandemic started in 2020,” she said. “It is a marked improvement compared to the 6.2 percent deficit recorded in 2023, given the better-than-expected revenue and spending performance.”
The Development Budget Coordination Committee (DBCC), which convened in December 2024, had projected a deficit target of 5.7 percent of GDP for the year.
Pangandaman said the latest fiscal data reaffirm the government’s commitment to fiscal consolidation, a core element of the Marcos administration’s agenda for prosperity.
“This solidifies the Philippines’ position as one of the dynamic emerging economies in the Asia-Pacific region,” she added.
The DBCC aims to reduce the deficit further to 3.7 percent of GDP by 2028, while continuing to invest in infrastructure, education and health care to support economic recovery and long-term growth.
Based on Treasury data, government revenues surged by 15.6 percent year-on-year to P4.42 trillion, equivalent to 16.7 percent of GDP.
Meanwhile, public expenditures grew by 11 percent to P5.93 trillion.
Pangandaman attributed the positive fiscal outcome to the accelerated rollout of health and social protection programs, salary adjustments for government workers and increased infrastructure investments, particularly in projects under the Department of Public Works and Highways.
“This positive outcome underscores the effectiveness of the Department of Budget and Management’s efforts to optimize agencies’ budget utilization rates,” Pangandaman said.