Philippine government plans to raise budget by 6% next year

MANILA: The Philippines plans to increase the budget by 6% next year to 7.2 trillion pesos (US$117 billion), according to the budget department.

Revenue is forecast to grow by 8.3% and spending 6.7%, according to a statement posted on the department’s website. The budget deficit is expected to narrow to 5.1% of gross domestic product from 5.4% this year.

President Ferdinand Marcos is seeking to re-energise an economy that was among Asia’s hardest hit by higher oil prices, which fuelled inflation and weakened growth. The government is targeting economic growth of up to 6% next year, compared with 3.5% to 4.5% this year.

“The issues surrounding alleged anomalies in flood control projects last year and, more recently, the conflict involving the United States, Israel and Iran made a drastic impact on the country’s macroeconomic fundamentals,” the budget department said.