Philippines Budget Deficit Largest in Over 2 Years

The Philippines’ government budget surplus widened sharply to PHP 165.4 billion in January 2026 from PHP 68.4 billion in the same month a year earlier. Government revenues edged up 0.4% year-on-year to PHP 468.9 billion, driven by a 1.21% increase in tax collections to PHP 442.8 billion, which accounted for 94.5% of total revenues. In contrast, non-tax revenues declined by 12.08% to PHP 26.0 billion. Meanwhile, government expenditures fell sharply by 23.9% to PHP 303.5 billion, mainly due to the rescheduling of transfers to local government units and the base effect of elevated capital outlays in January last year. Primary expenditures dropped by 40.3% to PHP 175.7 billion, while interest payments rose by 22.4% to PHP 127.8 billion, reflecting higher debt servicing costs and changes in payment timing. Excluding interest payments, the national government’s primary surplus surged to PHP 293.2 billion, up from PHP 172.8 billion in January 2025.

The Philippines government's budget deficit narrowed to PHP 313.2 billion in December 2025 from PHP 329.5 billion in the same month a year earlier. Government revenues declined 3.3% year-on-year to PHP 304.3 billion, while expenditures fell at a faster pace of 4.2% to PHP 617.4 billion. Stronger tax collections from the Bureau of Internal Revenue (+11.1%) and the Bureau of Customs (+9.8%) supported to limit the shortfall, although non-tax revenues plunged 59.3% to PHP 25.7 billion. For the full year 2025, the fiscal deficit widened 4.7% to PHP 1,576.8 billion from PHP 1,506.4 billion in 2024. Total revenues inched up 0.8% to PHP 4.5 trillion, driven by a 7.3% rise in tax receipts, while expenditures also increased 1.8% to PHP 6 trillion, driven by higher spending on LGU allocations, interest payments, and civilian salary adjustments that offset cuts to GOCC subsidies. For the full year 2025, the total primary deficit eased to PHP 712.7 billion, down from PHP 743 billion last year.

The Philippine government’s budget deficit narrowed to PHP 157.6 billion in November 2025 from PHP 213 billion in the same month last year. Government revenues grew 0.7% year-on-year to PHP 340.7 billion, while expenditures fell 9.6% to PHP 498.3 billion. Strong tax collections from the Bureau of Internal Revenue (+2.7%) and the Bureau of Customs (+3.4%) contributed to the narrower deficit, although non-tax revenues fell 41.6% to PHP 9.3 billion. For January to November 2025 period, the country's budget deficit increased to PHP 1,263.7 billion from PHP 1,176.9 billion in the same period a year earlier. Total revenues rose 1.1% to PHP 4.1 trillion, led by tax receipts (+7.0%), while expenditures grew 2.5% to PHP 5.4 trillion. Total primary deficit eased to PHP 463.2 billion, partly due to delays in some flood control projects amid ongoing probes into alleged corruption.