Budget and Management Secretary Amenah Pangandaman said the budget gap for 2024 has gone down to 5.7 percent of gross domestic product, or P1.506 trillion.

“ This is better than expected,” Pangandaman said in a statement. “This is the lowest rate recorded since the pandemic started in 2020.”

She made the statement following the recent release of the Cash Operations Report of the Bureau of the Treasury on the national government’s full-year fiscal performance for 2024.

“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 said.

The DBCC met on December 2, 2024, to revisit the government’s medium-term macroeconomic assumptions and fiscal targets, including the deficit outlook for 2024, which is expected to reach 5.7 percent of GDP.

“This performance reaffirms that we are on track with our Agenda for Prosperity,” Pangandaman added. “This solidifies the Philippines’ position as one of the dynamic emerging economies in the Asia-Pacific region.”

The DBCC aims to gradually reduce the budget deficit to 3.7 percent by 2028.

Pangandaman said the economic managers remain committed to achieving growth-enhancing fiscal consolidation while prioritizing long-term investments in key sectors such as infrastructure, education, and healthcare to sustain our economic recovery.

“This positive outcome underscores the effectiveness of the Department of Budget and Management's efforts to optimize agencies’ budget utilization rates,” Pangandaman said.

Government spending rose by 11.04 percent compared to the previous year, surpassing the target by 2.97 percent, driven primarily by the accelerated implementation of various health and social protection programs, increased salaries for qualified government employees, and strong infrastructure and other capital outlays of the Department of Public Works and Highways, among others.

Meanwhile, government revenues for 2024 reached P4.419 trillion or 16.72 percent of GDP, higher by 15.56 percent compared to 2023. This also exceeded the government’s revenue target by 3.49 percent, allowing for greater fiscal consolidation. Department of Budget and Management