Gov’t strengthens fiscal discipline

The government is intensifying its efforts to sustain sound fiscal management, Budget Secretary Amenah Pangandaman said on Friday, following the reported 5.7-percent reduction in the country’s budget deficit in 2024.

Pangandaman made the statement after the Bureau of the Treasury (BTr) announced that the budget deficit declined to P1.506 trillion, a 0.38-percent reduction, as revenue growth outpaced government spending.

According to the BTr’s full-year Cash Operations Report, the deficit as a share of gross domestic product (GDP) improved from 6.22 percent in 2023 to 5.7 percent in 2024—the lowest level recorded since the onset of the pandemic in 2020.

“This is the lowest rate recorded since the pandemic started in 2020,” Pangandaman said, expressing her satisfaction with the fiscal performance.

“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,” she added.

She credited the positive outcome to President Ferdinand R. Marcos Jr. and his economic team, who she said have been instrumental in ensuring that the administration’s macroeconomic targets are met.

Pangandaman reaffirmed the government’s commitment to pursuing fiscal consolidation while prioritizing investments in key sectors such as infrastructure, education, and healthcare to sustain the country’s economic momentum.

“Through these efforts, we will continue to build a Bagong Pilipinas that fosters job creation, increases incomes, and reduces poverty,” said Pangandaman, who also chairs the DBCC. “This positive outcome underscores the effectiveness of the Department of Budget and Management’s efforts to optimize agencies’ budget utilization rates.”

Government expenditures rose by 11.04 percent year-on-year, surpassing the target by 2.97 percent. The increase was primarily driven by the accelerated implementation of health and social protection programs, salary adjustments for qualified government employees, and substantial infrastructure investments by the Department of Public Works and Highways.

Meanwhile, government revenues for 2024 totaled P4.419 trillion, equivalent to 16.72 percent of GDP. This represents a 15.56-percent increase from the previous year and exceeds the revenue target by 3.49 percent, reinforcing the government’s fiscal consolidation efforts.

Pangandaman said the results reaffirm that the government is “on track” with its Agenda for Prosperity.