According to a report by the Philippine newspaper BusinessWorld on August 4, the Philippines' fiscal deficit for the first half of the year stood at 17.231 billion pesos, far below the government's ceiling of 152.128 billion pesos and a decline of over 90% compared to the 196.729 billion pesos recorded in the same period last year. The Philippine Secretary of Finance attributed the sharp reduction in the deficit to increased revenue and more rationalized fiscal spending. In the first half of the year, the Philippines' fiscal revenue reached 681.64 billion pesos, a year-on-year increase of 15%, though it still fell short of the 686.419 billion peso target. Public expenditure was 698.871 billion pesos, a year-on-year decrease of over 10%, which was also below the government's spending ceiling of 838.547 billion pesos. Benjamin Diokno, an economist at the University of the Philippines, criticized the government, noting that although this year's budget was approved early, 18% of the budget has yet to be allocated, and even the funds that were allocated have not been spent. He argued that the decline in government spending indicates that the government has failed to effectively implement its economic "catch-up" plan. The Philippines' GDP grew by 4.9% in the first half of the year, a significant slowdown compared to last year, with the decline in government spending and exports cited as the primary reasons.
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