Philippines records PHP145.2B budget deficit in May

The Philippines recorded a PHP145.2 billion budget deficit in May, narrowing year-on-year but contributing to a cumulative shortfall of PHP523.9 billion from January to May.

Revenue collections increased by 5.4% to PHP1.953 trillion for the first five months of 2025 compared with the same period last year, driven primarily by strong tax and non-tax revenues.

Tax revenues rose by 6.25%, reaching PHP322.9 billion in May, while non-tax revenues surged by 40.93% to PHP110.2 billion, mainly due to higher dividend remittances from government-owned corporations.

Spending climbed by 9.7% to PHP2.477 trillion for the first five months of 2025, driven by increased investment in infrastructure and social services.

Despite the widening deficit, the National Government remains committed to meeting its fiscal targets through prudent management and efficient resource utilization as per its Medium-Term Fiscal Program.