Philippine budget deficit surges to PHP 241.6B in June

The National Government's budget deficit surged to PHP 241.6 billion in June as spending outpaced revenue collections, according to the Bureau of the Treasury.

Government expenditure increased by 8.49% to PHP 548.5 billion compared to June 2024, driven by higher allocations for local government units and interest payments.

Primary spending grew by 9.14%, accounting for 89.53% of total expenditures in June, while tax revenues rose by 12.35% mainly due to the Bureau of Internal Revenue's collections.

Nontax revenue declined sharply by 43.25% year-over-year due to a high base effect from one-off remittances last year, contributing to the widening deficit.

In the first half of 2025, the budget deficit expanded by 24.69%, reaching PHP 765.5 billion, though it remained within the programmed target for the period.