2024 budget seen to spur economic growth next year: NEDA
The approved P5.768 trillion national budget for 2024, which allocates the biggest appropriation for the social services and economic services sectors, will support the priorities and policy directions of the Marcos administration’s eight-Point Socioeconomic Agenda and is aligned with the Philippine Development Plan 2023-2028.
The National Economic and Development Authority (NEDA) made this statement on Wednesday, December 20, following the signing into law by President Ferdinand Marcos Jr. of Republic Act 11975, also known as the General Appropriations Act (GAA) of 2024.
NEDA Secretary Arsenio Balisacan said that the timely passage of the 2024 national budget is expected to support the country’s economic growth next year and ensure the seamless delivery of government programs and services, which are much needed to pursue social and economic transformation.
“Efficiently utilizing our budget and implementing our planned programs are crucial for us to achieve our socioeconomic goals and realize resilient and sustainable growth for the country, and better lives for the Filipino people,” Balisacan said.
He thanked both chambers of Congress for the timely passage of the budget.
“These efforts from our colleagues in the legislative side are a manifestation of a mutual understanding of the goals and targets we are aiming to reach," added Balisacan.
NEDA stated that government spending has been a major driver of the economy in recent years. Prior to the pandemic, government spending, including public construction, contributed 15.9 percent to Gross Domestic Product (GDP) from 2016 to 2019.
It increased significantly in 2020 at the height of the pandemic and has continued to do so in subsequent years to support economic recovery.
In line with the Marcos Administration’s commitment to alleviating poverty, promoting infrastructure and human capital development, and steering the nation towards a higher growth trajectory, the 2024 GAA allocates the highest budget to the Social Services and Economic Services Sectors.
It is 9.5 percent higher than the 2023 budget and represents about 21.7 percent of the country’s GDP.
Among the government agencies, the Department of Education was allocated the highest budget of P924.7 billion, closely followed by the Department of Public Works and Highways with P822.2 billion. The Department of Health was allocated P306.1 billion.
“The year 2023 is all about laying the groundwork and establishing the foundation to achieve our development goals. Through the swift action of Congress, we are inspired to sustain our efforts to implement vital programs and projects that will transform our economy and significantly improve the living standards of every Filipino,” the government’s chief economic planner said. NEDA Public Affairs
