Budget Secretary Pangandaman hails 5.7% budget deficit drop
Budget Sec. Amenah Pangandaman
MANILA, Philippines – “We are very pleased with the report that our budget deficit for 2024 has gone down to 5.7 percent of Gross Domestic Product (GDP) or P1.506 trillion. This is better than expected,” Department of Budget and Management Secretary Amenah “Mina” F. Pangandaman said.
This came following the recent release of the Cash Operations Report of the Bureau of the Treasury on the national government’s full-year fiscal performance for 2024.
“This is the lowest rate recorded since the pandemic started in 2020,” Pangandaman noted. “It is a marked improvement compared to the 6.2 percent deficit recorded in 2023, given the better-than-expected revenue and spending performance. This is also well within the fiscal outlook of the Development Budget Coordination Committee (DBCC) at our last meeting.”
Pangandaman stressed that this is thanks in large part to the dynamic leadership of President Ferdinand R. Marcos Jr. and the Philippine Economic Team who have been at the forefront of ensuring that the macroeconomic targets of the administration are met.
Fiscal Consolidation on Track
The DBCC met on December 2, 2024, to revisit the government’s medium-term macroeconomic assumptions and fiscal targets, including the deficit outlook for 2024, which is expected to reach 5.7 percent of GDP.
Article continues after this advertisement“This performance reaffirms that we are on track with our Agenda for Prosperity,” Pangandaman added. “This solidifies the Philippines’ position as one of the dynamic emerging economies in the Asia-Pacific region.”
Article continues after this advertisementThe DBCC aims to gradually reduce the budget deficit to 3.7 percent by 2028.
Pangandaman said that 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.
“Through these efforts, we will continue to build a Bagong Pilipinas that fosters job creation, increases incomes, and reduces poverty,” the Budget Secretary and Chair of the DBCC assured.
Effective Government Spending
“This positive outcome underscores the effectiveness of the Department of Budget and Management’s efforts to optimize agencies’ budget utilization rates,” Pangandaman said.
Government spending rose by 11.04 percent compared to the previous year, surpassing the target by 2.97 percent, driven primarily by the accelerated implementation of various health and social protection programs, increased salaries for qualified government employees, and strong infrastructure and other capital outlays of the Department of Public Works and Highways, among others.
Meanwhile, government revenues for 2024 reached Php 4.419 trillion or 16.72 percent of GDP, higher by 15.56 percent compared to 2023. This also exceeded the government’s revenue target by 3.49 percent, allowing for greater fiscal consolidation.
