MANILA – The Philippines’ economic performance remains “impressive,” Socioeconomic Planning Secretary Arsenio Balisacan said Friday, stressing that the Marcos administration is succeeding in attaining “rapid and inclusive” growth.

Speaking to reporters in Pasay City, Balisacan said the government is “doing a good job,” even though it fell short of its targets for 2024.

“We fall short of the target but that’s understandable, as I’ve said, because of the external and domestic factors that are outside of our control,” Balisacan said.

“But nonetheless, you know the performance of the economy was quite impressive compared to our neighbors in the entire Asia,” he added, noting that the Philippines continues to be one of the top performers among the major emerging economies in Asia.

The Philippine economy grew by 5.8 percent in the first three quarters of 2024 and remains among the fastest-growing economies in Asia.

Balisacan said the country’s economic growth in recent years “have been quite inclusive compared to earlier periods in our recent history.”

He, however, admitted that it may be difficult to achieve the 6-percent growth target for 2025, considering the impact of the onslaught of the recent typhoons on the agriculture and many industries.

Balisacan said he still expects the “speedy” recovery of the agriculture sector this year.

“Offices were cancelled or suspended many times and so I can imagine the losses across industries… So, we may have difficulty achieving the six percent for the full year but we’ll see,” Balisacan sai

‘Inclusive, sustainable’ economy

Reaching the growth target is vital in keeping the Philippine economy “inclusive and sustainable,” Budget Secretary Amenah Pangandaman, meanwhile, said on Friday.

Speaking during the 2025 Budget Execution Forum at the Philippine International Convention Center in Pasay City, Pangandaman said the government’s overarching goal for the 2025 national budget is to fulfill the needs and aspirations of the people.

“Under our agenda for prosperity, we need to reach our economic targets of 6 to 8 percent GDP (gross domestic product) growth, bring down our deficit-to-GDP to 5.3 percent from 5.7 percent in 2024, achieve upper middle-income status, and bring down the poverty levels into single digits,” Pangandaman said.

“Amidst all the challenges, let us stay on track towards an inclusive and sustainable economic transformation.”

Pangandaman said the budget forum underscores the seriousness in turning the country’s aspirations into concrete actions.

She underscored the crucial role of budgeting in ensuring the efficient and effective delivery of public services to the people.

“This is a matter we must not take lightly. I hope that by the end of today’s session, we will have a deeper understanding of the budget process and more importantly the key terminologies enabling us to guide the public more effectively and responsibly,” Pangandaman said.

Gov’t spending critical to achieve targets

Balisacan said the current budget configuration would allow the government to focus on critical services, particularly for social protection, food security and basic infrastructure, including its flagship projects.

This, as he emphasized that the government expenditure is about 15 to 20 percent of the total economy.

“It’s really the private sector that drives the bulk of our economy. But the spending of government is so critical to enabling the entire economy from working efficiently so that we can achieve our targets,” Balisacan said.

Ongoing review of 2025 budget

Pangandaman said the review of the 2025 budget is still underway, adding that it is just “50 percent” complete.

Based on the initial results of the review, around PHP30 billion is needed to fill up the budget of the government agencies that have suffered huge cuts because of the adjustments made by Congress.

She also stressed the need for a close coordination between the executive and legislative branches to avoid future budget gaps.

“You know sa executive naman (in the executive), we know what’s our priorities, start pa lang ng (at the start of the) administration, the Philippine Development Plan, may respective roadmaps na po lahat ng ahensya, may legacy projects na po tayo na nakalista na po, na-enumerate na po natin iyan (all agencies have respective roadmaps, legacy projects listed and enumerated),” Pangandaman said.

“We will just have to make sure that all of those are funded now, until 2028 para matapos itong mga proyekto na ito (to finish these projects)."

Proper implementation

For his part, Executive Secretary Lucas Bersamin said President Ferdinand R. Marcos Jr. would ensure the proper implementation of the 2025 national budget.

“The President is really in earnest in seeing the proper implementation of the budget—the surviving parts of the budget,” Bersamin said.

Balisacan, Pangandaman, and Bersamin held a press conference on the sidelines of the Budget Execution for Fiscal Year 2025.

Bersamin said the forum would allow the executive branch to discuss the requisites for budget execution.

The government is now working under the approved PHP6.326-trillion 2025 national budget, after Marcos Jr. vetoed over PHP194 billion worth of projects that are inconsistent with the administration’s program priorities.

Marcos is also holding a series of meetings with government agencies to review the 2025 budget and identify gaps on their respective appropriations. (PNA)