THE MARCOS administration is still optimistic it can meet its goals under the Philippine Development Plan (PDP) even after missing its growth and fiscal targets since 2023.

In an executive report, the Department of Economy, Planning, and Development (DEPDev) said outcomes in the first three years of the PDP 2023-2028 showed a “mixed picture,” as headline targets were largely unmet.

“External factors (geopolitical tensions, conflicts, and global trade uncertainties) and domestic challenges (severe weather disturbances and COVID-19 scarring) have limited the effectiveness of the PDP strategies in its first three years of implementation,” it said.

The DEPDev said a “crisis of public trust” emerged last year after a corruption scandal involving flood control projects. This led to a slump in business confidence and government spending that contributed to a slowdown in gross domestic product (GDP) growth in the second half of 2025.

“With less than three years left to achieve the PDP targets, the government must make 2026 a rally point for the PDP,” DEPDev said. “The government must use this time to take stock, reorganize, and recalibrate strategies, with the goal of revitalizing PDP implementation.”

The Marcos administration was not able to meet the economic growth targets laid out in the PDP for the last three years.

The economy grew by 5.5% in 2023, well below the 6-7% goal under the PDP. In 2024, GDP expanded by 5.7%, also missing the 6.5-8% goal.

Last year, Philippine GDP growth slowed to 4.4%, falling short of the 5-6% target amid the graft scandal.

The DEPDev said the Philippine economy continues to show sound macroeconomic fundamentals despite external and domestic headwinds.

“Growth is expected to rebound, job creation is steady, inflation is manageable, and our financial system remains healthy with external buffers remaining adequate,” the DEPDev said.

The government set a 5-6% GDP growth target for this year, 5.5-6.5% for 2027, and 6-7% for 2028.

According to the report, the Marcos administration also missed its targets for the National Government (NG) deficit-to-GDP ratio. In 2023, the ratio stood at 6.2% versus the target of 6.1%. The ratio fell to 5.7% in 2024, but still above the 5.1% target.

The NG deficit-to-GDP ratio averaged 5.6% in the first nine months of 2025, higher than the full-year target of 4.1%.

On the other hand, the Marcos administration achieved its NG debt-to-GDP ratio in 2023 (60.1% versus the target of 60-62%) and in 2024 (60.7% versus the target of 57-61%).

However, the NG debt-to-GDP ratio climbed to a two-decade high of 63.2% in 2025, exceeding the 56-59% target.

DEPDev said the NG debt remains manageable, “given that the portfolio is predominantly long-term and domestic, accounting for 82.5% and 68.4% of the total, respectively, as of end-2025.”

The government missed the headline inflation target of 2.5-4.5% in 2023 when inflation quickened to 6%. However, inflation eased sharply to 3.2% in 2024, within the 2-4% target, and to 1.7% in 2025.

At the same time, the DEPDev noted that the government exceeded its targets in employment. The jobless rate stood at 4.6% in 2023, below the 5.3-6.4% target, and 4.3% in 2024, a tad below the 4.4-4.7% goal.

In 2025, the unemployment rate averaged 4.7% in 2025, slightly below the 4.8-5.1% target.

“The PDP headline indicators for which targets were achieved relate to tangible aspects of citizens’ lived experiences, or areas that are most felt by the public: employment, quality of employment, and poverty reduction,” it said.

‘QUICK WIN MEASURES’In the same report, the DEPDev said the government will aim to “deliver tangible results and implement reforms that strengthen economic performance and restore public trust” amid the scandal.

“Public expectations are rightfully high, and confidence can be shaken when questions arise about spending integrity and delivery. The practical response from the government is clear, decisive, coordinated, and measurable action — tighter controls, clearer accountability, and systems that make public spending easier to track, audit, and evaluate,” it said.

The government can address a widening “trust deficit” with “institutional responses that enforce transparency and accountability, and improvements in economic performance.”

“In the immediate term, it is imperative that the government establishes a clear and credible pathway to address the infrastructure corruption controversy and restore public confidence,” the DEPDev said.

“At the same time, we must mitigate the economic losses that result from absent or substandard flood control infrastructure.”

Measures include ramping up rehabilitation in calamity‑hit areas, upgrading the Department of Science and Technology’s forecasting capability, and expanding localized weather stations.

Other strategies include rationalizing class and work suspension policies to ensure safety while minimizing unnecessary disruptions, accelerating public works such as construction and maintenance activities during the dry season, and adopting a strategic global public relations campaign.

“DEPDev estimates that, in the third quarter of 2025, work and class suspensions may have reduced GDP by approximately 0.6 percentage points,” it said.

The department also recommended strengthening transparency and accountability by updating public dashboards showing which programs and projects are being implemented; and adopting technology-based monitoring of projects.

It also proposed a risk-based modeling system to prevent abuse in the tax audit selection process, as well as providing clear and accurate information on how tax dues are computed.

While fiscal consolidation was an early commitment of the government, DEPDev noted there were no key tax measures passed during the first three years of the Marcos administration. Instead, Congress passed measures that reduced revenues, which led to tighter fiscal space. — A.R.A.Inosante