"Oxford Economics", an Independent Economic Advisory Company that is based in the United Kingdom (UK), recently said that Philippines has the highest Fiscal Deficit in the entire South East Asia (SEA) which is equivalent to 5.6% of the Gross Domestic Product (GDP).

As a Result, it also has the strongest Pressure to lower its Spending to either stop the Deficit from worsening, or even lower the Deficit if the reduction in spending is enough. But this of course will affect the funding of the Government's various Projects.

A "Fiscal Deficit" happens when the Government is spending more than it is earning, and thus one Way of solving this is to borrow Money more from Lenders so it will be able to spend for its Programs. This is one main Reasons why this Government is getting a lot of Loans now from various Institutions.

The Philippine Government is not earning enough in Part because its Economy or GDP has not been growing at what it is targeting, which is between five to six percent, but the latest Data for the first Quarter of 2026 showed that the GDP grew by only 2.8%.

#Budget2026 #IndianEconomy #idrvinay #FiscalPrudence #GrowthWithStability #UnionBudget #EconomicResilience

My take for @abplive

Image by user6702303 on Freepik The Union Budget for 2024, presented by Finance Minister Nirmala Sitharaman, outlines the Indian government’s financial plan and policies for the fiscal year. Key highlights include: Economic Growth: The government has set a growth target of 7-8% for the upcoming fiscal year, focusing on infrastructure development and job creation. Taxation: There are revisions…

With the interim budget for 2024 just a week away, economic experts predict that the government is unlikely to introduce major populist schemes, following the trend of interim budgets avoiding entirely new initiatives. According to CNBC-TV18, the focus will be on fiscal deficit consolidation and maintaining a balance between populist measures and capital expenditure.

Samiran Chakraborty, Chief India Economist at Citi, highlights the government’s challenge in introducing expansive populist schemes while aiming to substantially reduce the fiscal deficit. While small adjustments like increasing the PM Kisan scheme amount may occur, a substantial populist initiative is not anticipated.

Kaushik Das, chief economist of Deutsche Bank, expects the government to adhere to a broader fiscal deficit consolidation plan, targeting around 5.3 per cent. As of November 2023, the fiscal deficit has already surpassed 50 per cent of the full-year budget estimate, reaching Rs 9.06 lakh crore.

Soumya Kanti Ghosh, Group CEA at State Bank of India, envisions the possibility of a roadmap outlining the government’s broader plans for the next few years, with a focus on key programs like Prime Minister Awas Yojana.

Ghosh anticipates positive surprises in capital expenditure, estimating a growth rate of 13 per cent to 14 per cent, bringing it close to 3.5 per cent of GDP in the next fiscal year. Reports suggest a proposal for a minimum 15–20 per cent increase in capital expenditure, with a significant portion directed towards infrastructure and strategic ministries.