Philippine Government Eyes Budget Boost Amid Economic Challenges

Philippine President Ferdinand Marcos Jr. has proposed a 7.2 trillion-peso budget for 2027, reflecting a 6% increase from the current year. The proposal aims to address an economic slowdown and a corruption scandal impacting infrastructure projects, with economic growth lagging below set targets for the year.

On Tuesday, Philippine President Ferdinand Marcos Jr. made a formal request to Congress for the approval of a 7.2 trillion-peso budget for the year 2027. This figure, equivalent to $118.1 billion, marks a 6% increase from the budget allocated this year.

The proposed budget is part of the government's strategy to regain momentum following a sharp economic slowdown and a corruption scandal that has hindered infrastructure spending. The country's economic growth in the second quarter slipped to 2.3% compared to the previous year.

This downturn represents the weakest growth rate since 2021, largely due to a decline in construction activity and diminished domestic demand. The first half of the year's growth now stands at 2.6%, failing to meet the government's target range of 3.5% to 4.5% for 2023.