Midterm government performance assessment
It has been three years since President Ferdinand Marcos Jr. and his team took office. Now is the right time for an initial assessment of their performance. This exercise covers the wins and misses of both executive and legislative based on how they have addressed Filipinos’ most important and urgent national concerns namely: addressing inflation, increasing pay of workers, fighting graft and corruption, fighting criminality, reducing poverty, and creating more jobs. The administration’s wins and misses in four key areas related to these top concerns are the following:
1. Economy. Wins: After rising to 5.8 percent and 6.0 percent in 2022 and 2023 brought by geopolitical tensions and supply chain bottlenecks, headline inflation settled at 3.2 percent in 2024, within the target 2 percent to 4 percent. The downtrend continues hitting a six-year low of 1.3 percent in May 2025.
In particular, food inflation went down from an average of 8 percent in 2024 to 2.1 percent for the first five months of 2025, primarily due to the contraction in the price of rice (-7.7 percent) and corn (-2.6 percent).
Labor market conditions are stable. The unemployment rate is at 4.1 percent in April 2025, a slight increase from 4.0 percent compared to last year. This is below the target unemployment rate of 4.8 percent to 5.1 percent for the year. However, quality of jobs remains a problem as underemployment rate is at 14.6 percent in April, unchanged from previous year.
Several key economic legislations were passed. On the fiscal front, the Ease of Paying Taxes Act and VAT on Digital Transactions Act will be critical in boosting government revenue collection. Furthermore, the CREATE More Law is expected to attract foreign direct investments and create more quality jobs for Filipinos.
Misses: Meanwhile, the administration fell short of its growth and fiscal targets. The economy grew by 5.6 percent for the past two years vs the government’s target band of 6 percent to 7 percent primarily due to weak government spending in 2023 and disruption from climate-related disasters in 2024.
On the fiscal front, the country’s deficit-to-GDP ratio has gone down from 7.3 percent in 2022 to 6.2 percent in 2023, and to 5.7 percent in 2024, slower than the 5.3 percent target deficit envisioned in the first Medium-Term Fiscal Framework. The country’s debt-to-GDP ratio has declined from 60.9 percent in 2022, to 60.1 percent in 2023, but rose to 60.7 percent as of end-2024, slightly above the target rate of 60.3 percent.
2. Infrastructure. Wins: To encourage more public-private partnership investments, the PPP code was amended in 2023 including the extension of the comparative Swiss challenge period for unsolicited proposals (from 60 to 90 days) allowing more time for other firms to challenge an unsolicited proposal. Delays in important ongoing projects such as MRT-7 were finally addressed in June 2025 when Congress passed the reforms in right-of-way acquisition.
Misses: In the controversial 2025 budget, around P26.3 billion of funds allotted for counterpart funding for foreign assisted infrastructure projects (e.g. payment for right-of-way) were moved by Congress from programmed appropriations with definite sources of funding to unprogrammed appropriations in which disbursements are uncertain until the government is able to generate additional revenues from a combination of sale of assets, new taxes or higher than projected collections
3. Human development. Wins: A key reform was the passage of the Enterprise-Based Education and Training (EBET) Act which seeks to enhance skills of workers by institutionalizing private sector-led training thereby increasing the employability of the workforce. Mr. Marcos also expanded the Pantawid Pamilyang Pilipino Program (4Ps) to include pregnant and breastfeeding women, helping ensure access to essential health services and nutrition support during the critical first 1,000 days of a child’s life.
Misses: The expanded 4Ps program is still waiting for its budget allocation, delaying its intended impact. Moreover, the government has yet to recognize the need to extend support beyond the first 1,000 days.
4. Transparency and accountability. Wins: The E-Governance Act was ratified by the 19th Congress which expands digital access to government services.
Misses: More restraint and transparency needed in the 2025 national budget, particularly with the uncontrolled rise in unprogrammed appropriations and in the bicameral process.
Conclusion: Among the top concerns of Filipinos, inflation has been tempered. Reforms in infrastructure development, passage of the EBET act to help with job creation and improving the skills of Filipino workers were done. However, substantial improvements are still needed in the area of transparency especially when it comes to the crafting of the national budget.
Accordingly, the performance of the Marcos administration and Congress have so far been less than satisfactory. Like in a basketball game, the Marcos administration had a subpar first half and are facing a considerable deficit. But the game is not yet over. And the Marcos team can still bounce back and perform better in the second half.
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Gary B. Teves had served as finance secretary under the Arroyo administration. For comments/queries you may contact gbtresearchteam@gmail.com
