MANILA - Philippine economic managers on Friday said next year’s budget will be P5.768 trillion, which is 9.5 percent higher than this year’s budget of P5.268 trillion.
The Development Budget Coordination Committee said it was also keeping the 6 to 7 percent GDP growth target for 2023.
The DBCC noted that the Philippines’ 6.4 percent GDP growth in the first quarter was faster than other emerging economies such as Indonesia, China and Vietnam.
The cabinet-level body said that inflation was also likely to average 5 to 6 percent this year, which was narrower than the earlier assumption of a 5 to 7 percent inflation range. It said this was “partly due to a consistent slowdown in inflation over the past four months.”
Inflation is expected to return to the target range of 2 to 4 percent in 2024, the DBCC said.
Aside from inflation, the DBCC also revised its assumptions for the peso-dollar exchange rate, which is now seen to range from 54 to 57 “and is expected to be broadly stable” in this range until 2028.
Despite the fast growth in the first quarter, the DBCC said it has lowered growth projections for goods exports and imports growth for this year to 1 percent and 2 percent from 3 percent and 4 percent.
This was due to “the trend in near-term global demand outlook and
trade prospects,” it said. Global trade is expected to slow down this year amid elevated inflation and as China’s economic rebound sputters.
Meanwhile, the DBCC said the national budget of P5.768 trillion in 2024 “will only include implementation-ready agency proposals.”
“The proposed national budget will continue to prioritize expenditure items that promote social and economic transformation through infrastructure development, food security, digital transformation, and human capital development,” it said.