Philippines ‘on track’ to hit deficit-to-GDP target
The government remains on track to meet its fiscal deficit target this year, with the deficit-to-gross domestic product (GDP) ratio projected at 5.45 percent for the full year, according to the Department of Finance.
The Philippine government is on track to hit its fiscal deficit target for the year 2026, according to the Department of Finance (DOF). Finance Secretary Frederick Go revealed that the deficit-to-GDP ratio is projected to reach 5.45 percent for the entire year, marking the lowest level since the administration began. This improvement comes after the first half of the year showed a reduced deficit-to-GDP ratio of 5.46 percent, compared to 5.65 percent in the same period last year.
The DOF predicts that the deficit will continue to shrink, reaching 3.5 percent by 2030, which will strengthen the country's fiscal position. Despite economic shocks such as the Middle East conflict, the government's fiscal discipline is translating into tangible results. The deficit-to-GDP ratio has been steadily decreasing from 8.6 percent in 2021 to 7.3 percent in 2022, and it was 5.6 percent in 2025.
By 2030, the DOF anticipates total revenues to surpass P6 trillion, while the national government debt remains sustainable at 63.2 percent of GDP, below the World Bank's 70 percent threshold for debt sustainability.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
