The Duterte government now expects the Philippine economy to contract by 2 to 3.4 percent this year, with the Covid-19 pandemic estimated to slash gross domestic product by a whopping P2 trillion.
The adjustment was particularly due to the full implementation of President Rodrigo Duterte’s directives to increase food supply and the passage of the Rice Tariffication Act.
The upward adjustment in deficit limits in succeeding years of President Duterte means accommodating more spending, without any assurance that additional revenues will come in.