The Development Budget Coordination Committee lowered the country’s growth or gross domestic product (GDP) to a target ranging this year from 6 percent to 7 percent range from the previous 6.5 percent to 7.5 percent while that for 2025 was narrowed to 6.5 percent from 7.5 percent from 6.5 percent from 8.0 percent.
The target GDP the past three years of the administration of President Ferdinand Marcos Jr.—2026 to 2028—was retained at 6.5 percent and 8.0 percent.
The target for inflation and the peso-dollar exchange rates between 2024 and 2028 remain at 2.0-4.0 percent and P55-P58, respectively.
Over the medium term, the government’s revenue performance will further improve through enhanced tax administration reforms focused on modernizing and upgrading the efficiency of the Philippine tax system. Revenues are projected to reach P4.270 trillion (16.1 percent of GDP) in 2024 and rise to P6.078 trillion (16.4 percent of GDP) by 2028.
Earlier assumptions projected 2024 revenue at P4.235 trillion and increase to P6.622 trillion in 2028.
Expenditures through 2028 are expected to remain at an average of 20.7 percent of the GDP, reaching P5.754 trillion (21.7 percent of GDP) in 2024 and further increasing to P7.450 trillion (20.1 percent of GDP) by 2028. Budget priority will continuously be given to programs and projects that ensure social and economic transformation, in line with the administration’s eight-point socioeconomic agenda and the Philippine Development Plan 2023-2028.
Prior to the latest revision, the expenditure track would move from P5.630 trillion in 2024 to P7.797 trillion in 2028.
Based on the latest revenue and spending outlook, the deficit program will gradually narrow from 6.2 percent in 2023 to 3.7 percent in 2028.
Consistent with the new macroeconomic assumptions and fiscal targets, the proposed national budget for 2025 is set at P6.200 trillion, equivalent to 21.4 percent of GDP and higher by 7.5 percent compared to the 2024 national budget.
