Why the 2025 budget is crucial: PH economy at its best during election year

Philippine Economy News

Why the 2025 budget is crucial: PH economy at its best during election year
Philippine National BudgetBusinessEconomy &Amp
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Appointed and elected government officials put their best feet forward during an election year, effectively boosting the economy

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Data from the Philippine Statistics Authority show that gross domestic product , the value of all the final goods and services produced and rendered in a specific time period, grows faster during an election year. The trend, however, was broken during the 2013 and 2019 midterm elections, but the dip was not as low as non-election years.Political scientists and economists have repeatedly pointed out that the government, the largest unit in the economy, ramps up its spending and rolls out attractive projects during this period.

The latest proposed budget for 2025 of the Development Budget and Coordination Committee is equivalent to 22% of GDP and higher than the 2024 budget of P5.77 trillion. Last April, the DBCC proposed a budget of P6.2 trillion, which means they raised the proposed budget by 2.4%.

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