A FITCH Solutions company predicted that the country's budget deficit will decline this year, with the collections expected to exceed target.

According to BMI Research, it stated that the Philippine budget deficit will narrow to 5.5 percent of gross domestic product (GDP) this year from 6.2 percent of GDP in 2023.

"This narrowing would mark the third consecutive year the budget shortfall shrinks, a reflection of the current administration’s push for fiscal consolidation," the research and financial market analysis firm said.

Likewise, the BMI also took note of the debt-to-GDP of the country is also projected to fall to 59.7 percent this year, from 61.1 percent of GDP in 2023, and further decline to 52 percent by 2028,

Philippine economic growth meanwhile is forecast to hit 6.2 percent this year.

According to BMI the revenue collection “will likely overshoot target in 2024 as efforts to broaden tax base gain traction."

Just last year, the revenue collection had already P3.8 trillion, 5.2 percent higher than the original target set by the government.

"We think that this trend will continue over the coming years as policies targeted to broaden the tax base feed. Newly appointed finance chief Ralph Recto pledged to sustain these efforts," BMI said.