The National Government’s budget deficit expanded by 9.39% in June as spending outpaced revenue growth. Despite the surge, the first‑half fiscal gap remained broadly aligned with the government’s program.
Treasury data show the deficit grew to P264.3 billion, up from P241.6 billion a year earlier. The increase underscores the widening fiscal gap.
The rise reflects a 5.51% year‑over‑year increase in expenditures, which outstripped a 2.46% rise in revenue collection. This disparity drove the larger deficit.
Month‑to‑month, the budget balance widened from a P198.5 billion deficit in May. The trend reflects the accelerating pace of spending.
Government outlays reached P578.7 billion in June, driven by a larger share of the National Tax Allotment to local government units and subsidies to government‑owned corporations such as Food Terminal, Inc. for the Rice‑for‑All program.
Additional disbursements stemmed from direct payments by development partners to suppliers and contractors on foreign‑assisted rail transport projects.
Primary expenditure, net of interest, rose 5.14% to P516.3 billion, accounting for 89.22% of total disbursements. This component remains the bulk of government spending.
Interest payments increased 8.73% to P62.4 billion, contributing to a primary deficit of P201.9 billion, 9.59% higher than a year ago.
Total revenue collection grew 2.46% to P314.5 billion, but a 43.53% decline in non‑tax revenues offset much of the gain. The shortfall highlights the volatility of non‑tax streams.
Tax receipts, which constitute 95.2% of total collections, rose 6.86% to P299.3 billion. Strong tax performance helped mitigate the revenue gap.
Collections by the Bureau of Internal Revenue increased 5.07% to P210.7 billion, while the Bureau of Customs saw an 11.88% jump to P86.2 billion.
The rise in BIR collections is attributed to intensified tax administration, ongoing modernization initiatives, and improved taxpayer compliance.
Non‑tax revenues fell to P15.1 billion, down from P26.8 billion a year earlier. Earlier dividend remittances contributed to the decline.
For the January‑June period, the fiscal gap widened 2.79% to P786.8 billion, representing 47.4% of the revised P1.66‑
