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Govt boosts project spending as growth slows

Balancing the books: Serame's proposed budget carries a P7.6 billion deficit and continues a string of shortfalls seen in recent years PIC: PHATSIMO KAPENG
Balancing the books: Serame's proposed budget carries a P7.6 billion deficit and continues a string of shortfalls seen in recent years PIC: PHATSIMO KAPENG

The Finance Ministry is proposing a development budget of P21 billion for the 2023-24 financial year, P6.3 billion more than it had originally planned last September, in order to maintain the country’s growth momentum.

The economy rebounded strongly after the 2020 COVID-19 shock, recording 11.8 percent growth in 2021-22 and a higher than expected 6.7 percent for 2022-23. However, the continued recovery is threatened by the possibility of a slowdown in the global economy, a fact acknowledged by the Finance Ministry which expects the key mining sector to shrink by 0.1 percent in the 2023.

Growth in 2023-24 is forecast at four percent, before rising to 5.1 percent in 2024-25. Both figures are below the 5.7 percent level required to reach high income status by 2036.

Editor's Comment
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