The Philippine government plans to raise its budget by 6% next year, reaching 7.2 trillion pesos ($117 billion), according to the Department of Budget and Management. Revenue is projected to grow 8.3%, while spending will increase 6.7%, helping narrow the budget deficit to 5.1% of GDP from 5.4% this year.

President Ferdinand Marcos Jr. aims to revitalize an economy that suffered among Asia's hardest blows from surging oil prices. These price shocks drove inflation higher and weakened growth momentum, prompting the government to target economic expansion of up to 6% for next year - significantly above the 3.5% to 4.5% projected for 2024.

Recent macroeconomic pressures stem from alleged flood control project irregularities and geopolitical tensions involving the US, Israel, and Iran. These factors have disrupted the country's fiscal stability and growth trajectory, making the proposed budget increase critical for infrastructure recovery and economic stimulus measures.

The budget increase signals Manila's push to rebuild fiscal buffers while supporting growth. With inflation pressures easing and commodity prices stabilizing, the government's aggressive spending plans could boost investor confidence if implemented effectively.