Finance Minister Ralph Recto said the country's budget deficit is expected to gradually narrow as more jobs are created, income levels rise and poverty declines.
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During Monday's deliberation on the proposed 2025 national budget, Recto said: "With higher government revenues and improved expenditure management, the budget deficit is expected to narrow from 5.6% in 2024 to 3.7% in 2028."
“[W]hen I took over as Minister of Finance, my first priority was to recalibrate our growth and fiscal targets to ensure they are achievable and adaptable to external shocks. Our refined Medium-Term Fiscal Program will gradually reduce our deficit and debt in a realistic manner; while creating more jobs, raising the incomes of our people and reducing poverty in the process,” he said.
He said the program takes into account current external trends that are having a major impact on the global economy as we still recover from the pandemic, such as geopolitical tensions.
