The budget deficit widened to P241.6 billion in June, up 15.6 percent from P209.1 billion last year as spending outpaced revenue growth, the Bureau of the Treasury said on Thursday.
Government expenditure rose 8.5 percent year-on-year to P548.5 billion, largely due to increased tax allotments for local government units, the annual block grant to the Bangsamoro region (BARMM), as well as higher personnel and interest payments.
Revenue inched up by 3.5 percent to P306.9 billion as robust tax collection, which grew by 12.4 percent, helped offset a sharp 43.3 percent drop in non-tax income.
For the second quarter of 2025, the fiscal gap widened to P765.5 billion from P613.9 billion in the same period last year, highlighting persistent fiscal pressure from expanding government obligations.
