Marcos Seeks Record 7.2 Trillion Peso Budget to Revive Economy

The proposed $118.1 billion allocation arrives at a precarious moment for the nation, which saw growth plummet to 2.3% in the second quarter. This performance stands as the weakest expansion since 2021, driven primarily by a collapse in construction activity and a persistent cooling of domestic demand. With the first half of the year yielding only 2.6% growth, the government has missed its internal target range of 3.5% to 4.5% for 2023.

Legislators face the challenge of restoring fiscal confidence while managing the fallout from a corruption scandal that has effectively paralyzed public spending. The administration intends to use this spending boost to regain momentum, though the success of the plan hinges on the government's ability to clear the backlog of infrastructure initiatives currently stalled by institutional instability.