DOF: Fiscal deficit 'manageable'

Finance Secretary Ralph Recto said on Monday, August 18, that the country's fiscal deficit remains at "manageable" levels, with the first half of the year recording P765.5 billion.

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Recto made the statement while presenting the Department of Finance's (DOF) report on the country's current economic situation and the macroeconomic assumptions underpinning the proposed 2026 National Expenditure Program (NEP) to the House of Representatives.

He said that the deficit is still within the midyear target, with the deficit-to-GDP ratio at 5.7%, while the government's full-year target is 5.5%.

Recto compared this to neighboring countries. Malaysia is running a budget deficit of 4.5% of GDP, while Indonesia's deficit stands at 1.8%.

By contrast, Singapore posts a modest surplus of 0.4%, indicating it collects slightly more revenue than it spends, and Vietnam has the highest surplus at 10.4%.

P4.52-T projected revenue for 2025

Against this regional backdrop, Finance Secretary Ralph Recto cited the DOF's Fiscal Policy and Monitoring Group, saying that the Philippine government is expected to generate more revenue each year.

Revenue for 2025 is projected at P4.520 trillion, a 2.29% increase from 2024's P4.419 trillion.