Budget Secretary Amenah Pangandaman expressed satisfaction over the reduction in the national budget deficit. In her statement on Friday, she highlighted that the decrease surpassed initial expectations.
“We are thrilled to report that our 2024 budget deficit has fallen to 5.7 percent of GDP, equivalent to P1.506 trillion. This achievement is beyond our projections,” stated Pangandaman.
The statement followed the Bureau of the Treasury’s release of the Cash Operations Report, detailing the fiscal performance for the year 2024.
Pangandaman noted this as the most significant reduction since the onset of the Covid-19 pandemic five years ago, marking a notable improvement from the 6.2 percent deficit recorded in 2023. She attributed this to enhanced revenue and spending performance, aligning with the fiscal outlook established by the Development Budget Coordination Committee (DBCC) during their recent session.
She acknowledged the leadership of President Ferdinand Marcos Jr. and his economic team for prioritizing the macroeconomic targets of the administration.
Last December, the DBCC revisited the government’s medium-term macroeconomic assumptions, including the fiscal targets, predicting a 5.7 percent deficit for 2024.
Pangandaman affirmed that these results align with the government’s Agenda for Prosperity and strengthen the Philippines’ standing as a dynamic emerging economy in the Asia-Pacific region. By 2028, the DBCC aims to reduce the budget deficit to 3.7 percent.
“Through our continued efforts, we are committed to building a prosperous Philippines that enhances job creation, boosts incomes, and alleviates poverty,” she added.
The Department of Budget and Management (DBM) reported an 11.04 percent increase in government spending in 2024, which exceeded the target by 2.97 percent, mainly driven by enhanced health and social protection programs, salary increments for government employees, and substantial infrastructure investments.
In 2024, government revenues climbed to P4.419 trillion, accounting for 16.72 percent of GDP, marking a 15.56 percent rise from the previous year and surpassing revenue targets by 3.49 percent.