Philippines Budget Deficit Widens Sharply in July

2026-08-27 07:25 By Erika Ordonez 1 min. read

The Philippines’ budget deficit widened sharply to PHP 106.3 billion in July 2026 from PHP 18.9 billion in the corresponding month of the previous year.

Total revenues rose 2.12% year-on-year to PHP 482.3 billion, with a 7.02% increase in tax collections partly offset by a 39.92% decline in non-tax revenues, mainly due to the timing of BSP dividend remittances.

Total expenditures soared 19.82% to PHP 588.6 billion, led by higher disbursements for social assistance programs to help address the impact of the Middle East conflict, as well as defense modernization initiatives and foreign-assisted rail transport projects.

Primary expenditures rose 17.25%, accounting for 76.69% of total spending, while interest payments jumped 29.14% amid higher debt servicing costs and foreign-exchange fluctuations.

For the first seven months of the year, the country recorded a budget shortfall of PHP 893.1 billion, higher than PHP 784.4 billion in the same period last year.



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Philippines Budget Deficit Widens Sharply in July
The Philippines’ budget deficit widened sharply to PHP 106.3 billion in July 2026 from PHP 18.9 billion in the corresponding month of the previous year. Total revenues rose 2.12% year-on-year to PHP 482.3 billion, with a 7.02% increase in tax collections partly offset by a 39.92% decline in non-tax revenues, mainly due to the timing of BSP dividend remittances. Total expenditures soared 19.82% to PHP 588.6 billion, led by higher disbursements for social assistance programs to help address the impact of the Middle East conflict, as well as defense modernization initiatives and foreign-assisted rail transport projects. Primary expenditures rose 17.25%, accounting for 76.69% of total spending, while interest payments jumped 29.14% amid higher debt servicing costs and foreign-exchange fluctuations. For the first seven months of the year, the country recorded a budget shortfall of PHP 893.1 billion, higher than PHP 784.4 billion in the same period last year.
2026-08-27
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2026-06-25