Manila: The national government's fiscal performance remained on track in the first half of the year, with the budget deficit reaching PHP786.8 billion, data from the Bureau of the Treasury (BTr) showed. In its cash operations report released Thursday, the BTr noted that while the budget deficit during the period was higher than the PHP765.5 billion recorded from January to June 2025, it was 0.17 percent lower than the PHP788.2 billion program set for the first half of the year.

According to Philippines News Agency, revenue collections amounted to PHP2.39 trillion, a 5.67 percent increase from PHP2.26 trillion collected in the same period last year. Of the total, tax revenues were PHP2.14 trillion, marking a 5.38 percent year-on-year rise. The Bureau of Internal Revenue (BIR) collected PHP1.63 trillion, surpassing last year's PHP1.55 trillion. The BTr attributed the increase to higher collections from corporate income tax, personal income tax, value-added tax (VAT), other percentage taxes, and miscellaneous taxes.

The Bureau of Customs (BOC) collected PHP491.9 billion in the first half, exceeding last year's collection of PHP458.8 billion by 7.21 percent. It also surpassed the PHP484.8 billion collection target for the first half. The BTr stated the increase was due to higher VAT collection, attributed to higher oil prices. These gains effectively offset a 2.73 percent drop in excise collections, partly due to the decline in the volume of oil imports and the temporary suspension of excise tax on LPG and kerosene.

Non-tax revenues reached PHP246.5 billion, surpassing both the PHP227.7 billion recorded in the first half of 2025 and the PHP230.2 billion midyear program. Government expenditures accelerated to PHP3.18 trillion, a 4.94 percent increase from last year's PHP3.03 trillion.

For June alone, government revenues increased by 2.46 percent to PHP314.5 billion, driven by stronger tax collections. The BIR collected a total of PHP210.7 billion, up by 5.07 percent year-on-year, due to intensified tax administration and enforcement efforts, ongoing modernization initiatives, and improved taxpayer compliance. BOC collections increased by 11.88 percent to PHP86.2 billion.

Expenditures in June reached PHP578.7 billion, 5.51 percent higher than the PHP548.5 billion recorded in the same month last year. This was driven by the higher National Tax Allotment share of local government units, subsidy releases to Government-Owned and Controlled Corporations, particularly to the Food Terminal Incorporated for the implementation of the Rice-for-All Program, and the direct payments made by development partners to suppliers or contractors of various foreign-assisted rail transport projects of the Department of Transportation.

Department of Finance Secretary Frederick Go expressed optimism about meeting the government's revenue targets for the year. "The Department of Finance is confident about the abilities of our revenue-generating agencies to be able to meet their targets for the second half of the year," he stated at the sidelines of the signing of a joint administrative order prohibiting the importation of goods produced through forced labor. (PNA)