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2024 Philippine budget deficit projected to fall to 5.5% of GDP: BMI

11 Apr '24

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2024 Philippine budget deficit projected to fall to 5.5% of GDP: BMI

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The Philippine budget deficit is projected to drop this year to 5.5 per cent of GDP from 6.2 per cent of GDP last year as revenue collection is expected to exceed target, BMI Research said in a report.
The debt-to-GDP is also projected to fall to 59.7 per cent this year from 61.1 per cent in 2023.
Economic growth is projected to hit 6.2 per cent this year.

The budget deficit in the Philippines is projected to drop this year to 5.5 per cent of gross domestic product (GDP) from 6.2 per cent of GDP last year as revenue collection is expected to exceed target with efforts to broaden tax base gaining traction, according to BMI Research, a unit of Fitch Solutions.

This would mark the third consecutive year the budget shortfall would shrink, reflecting the administration’s push now for fiscal consolidation, a BMI Research report, titled ‘Philippines: Narrower Fiscal Deficit In 2024’, said.

The research and financial market analysis firm said the country's debt-to-GDP is also projected to fall to 59.7 per cent this year from 61.1 per cent in 2023, and further decline to 52 per cent by 2028.

Economic growth is projected to hit 6.2 per cent this year.

Revenue collection reached PHP3.8 trillion ($67.22 billion) last year, 5.2 per cent higher than the original target. The government expects revenues to reach PHP4.27 trillion ($75.56 billion) this year, and rise to PHP6.078 trillion by 2028.

"We think revenue collection will amount to around 16.3 percent of GDP by the end of 2028," BMI was quoted as saying by Philippine media outlets.

For expenditures, BMI said it is projected to average to 20.2 per cent of GDP until the end of President Ferdinand R. Marcos Jr.'s term in 2028.

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