The government expects inflation to remain elevated in the near term but is working to bring it back within the 2 to 4 percent target range by 2028, acting Budget Secretary Kim Robert de Leon said Friday.
De Leon said coordinated measures by the economic team are aimed at easing price pressures while supporting economic growth and maintaining fiscal stability.
“Behind every economic statistic is a Filipino story. Inflation is not merely a percentage. It is the price of rice, food, electricity, and transportation,” De Leon said during an economic forum at the Bangko Sentral ng Pilipinas Assembly Hall in Manila.
The Philippine Statistics Authority reported that headline inflation eased to 6.2 percent in July from 6.4 percent in June.
De Leon said the government projects the economy to grow by 4.5 percent in 2026, with annual growth expected to accelerate to 5 to 6 percent from 2027 to 2030.
To support that growth, the administration has recalibrated its medium-term fiscal program while maintaining its goal of keeping public finances sustainable.
The government will pursue stronger revenue collection through improved tax administration, digitalization, better compliance and expanded non-tax revenues, De Leon said.
On the spending side, he said the government will continue directing funds toward human capital, infrastructure and other programs expected to generate significant economic and social returns.
The administration also aims to gradually narrow the fiscal deficit from 5.4 percent of gross domestic product in 2026 to 3.5 percent by 2030.
“Fiscal discipline does not mean refusing to spend, but knowing where to spend, why we are spending, and what the Filipino people should get in return,” De Leon said.
The government’s fiscal strategy is intended to balance near-term economic support with efforts to strengthen public finances over the medium term, as officials work to bring inflation closer to the target range.
Photo courtesy of World Nomads
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