Manila: The economic team remains committed to bringing inflation back within the government's 2 percent to 4 percent target range by 2028, acting Budget Secretary Kim Robert de Leon said Friday. De Leon highlighted that while inflation is anticipated to stay elevated in the short term, coordinated government efforts are expected to stabilize it within the target range.

According to Philippines News Agency, the country's headline inflation eased to 6.2 percent in July from 6.4 percent in June, as reported by the Philippine Statistics Authority. De Leon emphasized the human impact of inflation, stating, "Behind every economic statistic is a Filipino story. Inflation is not merely a percentage. It is the price of rice, food, electricity, and transportation," during an economic forum at the Bangko Sentral ng Pilipinas Assembly Hall.

De Leon expressed optimism about economic growth, projecting a 4.5 percent growth rate in 2026, with expectations for acceleration to 5 percent to 6 percent annually from 2027 to 2030. He also discussed the administration's recalibrated medium-term fiscal program designed to support economic growth while ensuring fiscal sustainability. "We have also recalibrated our medium-term fiscal program with a straightforward objective, support growth today without sacrificing fiscal sustainability tomorrow," he explained.

The government plans to enhance revenue collection through improved tax administration, digitalization, stronger compliance, and expanded non-tax revenue collection. Public spending will focus on human capital, infrastructure, and high-impact programs that yield significant economic and social returns. De Leon reiterated the administration's commitment to gradually reducing the fiscal deficit from 5.4 percent of GDP in 2026 to 3.5 percent by 2030, stating, "Fiscal discipline does not mean refusing to spend, but knowing where to spend, why we are spending, and what the Filipino people should get in return."