28.08.202508:10:25UTC+00Philippines Budget Deficit Narrows in July

In July 2025, the Philippines saw its budget deficit decrease to PHP 18.9 billion, compared to PHP 28.8 billion during the same month in the previous year. This reduction was largely due to a 3.3% year-on-year increase in government revenues, reaching PHP 472.3 billion, which outpaced a 1.0% rise in government expenditures, totaling PHP 491.2 billion. The Bureau of Internal Revenue and the Bureau of Customs played significant roles in this improvement, with tax collections rising by 4.8% and 6.0%, respectively. However, non-tax revenues experienced a decline of 9.7%, falling to PHP 49.3 billion. The slight increase in government spending was attributed to higher disbursements to local governments and autonomous regions, alongside heightened interest payments and personnel expenses. For the period from January to July, the cumulative budget deficit was at PHP 784.4 billion, comfortably within the adjusted annual target of PHP 1.56 trillion. During this time, overall revenues increased by 4.8% to PHP 2.73 trillion, primarily driven by a 9.7% growth in tax revenues, while total expenditures rose by 8.2% to PHP 3.52 trillion.