Manila: The national government's budget deficit narrowed to PHP145.2 billion in May due to robust growth in revenues and moderation in spending, as reported by the Bureau of the Treasury (BTr). In comparison, the budget deficit for May of the previous year stood at PHP174.9 billion.
According to Philippines News Agency, revenue collections during the month increased by 13.35 percent to PHP433.1 billion, up from PHP382.1 billion the previous year, driven by strong growth in both tax and non-tax revenues. Tax revenues, amounting to PHP1.752 trillion, rose by 10.49 percent, buoyed by the government's revenue-generating efforts.
A breakdown of the data reveals that the Bureau of Internal Revenue (BIR) collections rose by 10.71 percent to PHP242.7 billion. This increase was attributed to corporate income tax, personal income tax, excise tax on tobacco products, taxes on government securities, and taxes on banks and financial institutions. The BIR credited its intensified collection efforts, strengthened campaigns against fake transactions, ongoing digital transformation, and continued crackdown on illicit tobacco trade for the improved performance.
Meanwhile, the Bureau of Customs (BOC) saw collections reach PHP75.7 billion, marking a 6.9 percent decrease due to reduced tariffs on rice and battery-powered electric vehicles. Despite this, the BOC remains committed to enhancing revenue strategies and identifying new measures to offset these effects.
Non-tax revenues grew by 40.93 percent to PHP110.2 billion, driven by higher dividend remittances from government-owned and -controlled corporations, reflecting improved financial performance and stronger compliance.
BTr data also indicated that expenditures rose by 3.81 percent to PHP578.2 billion in May, up from PHP557 billion the previous year. The increase was mainly due to higher interest payments, national tax allotment releases to local government units, and annual block grants to the Bangsamoro Autonomous Region in Muslim Mindanao. Additionally, the implementation of the second tranche of salary adjustments for qualified civilian government employees under Executive Order 642 contributed to the rise in spending.
For the first five months of the year, the budget deficit amounted to PHP523.9 billion, representing a 29 percent increase as the government accelerated investments in infrastructure and social programs to support inclusive growth. The BTr noted that the government remains on track to meet its deficit target for the year through prudent fiscal management and efficient use of resources. Revenue collection during this period increased by 5.41 percent to PHP1.953 trillion, while total expenditures from January to May rose by 9.71 percent to PHP2.477 trillion.
