The national government recorded a wider budget deficit of P174.9 billion in May as the 22 percent increase in spending outpaced the 15 percent growth in revenue.
The May print widened the five-month budget deficit this year to P404.8 billion.
Total revenue in May rose 15 percent to P382.1 billion on higher non-tax collections, pushing revenue collection between January-May 16 percent higher to P1.9 trillion. Non-tax revenues contributed P267.0 billion, up 61 percent year-on-year.
The Bureau of Internal Revenue (collected P219.2 billion in May, net of tax refunds, up 2.8 percent. The BIR collection got a boost from value added tax, withholding taxes, and miscellaneous taxes. For the January-May period, BIR increased by 13 percent the total collection of P1.2 trillion.
Meanwhile, the Bureau of Customs collected P81.3 billion in May, net of tax refunds, up 4.3 percent year-on-year. The improvement was attributed to enhanced monitoring of imported commodity values and classifications, alongside intensified border controls.
While revenue collections showed healthy growth, the accelerated government spending contributed significantly to the widened budget deficit for the period, reflecting ongoing fiscal challenges amid economic priorities and expenditures.
NG increased disbursement by 22 percent to a total of P557.0 billion in May. The rise was driven by capital outlay projects of the Department of Public Works and Highways, the Department of National Defense, as well as social and health programs under the Department of Social Welfare and Development and the Department of Health. Increased National Tax Allotment shares for local government units and higher budgetary support to government-owned and -controlled corporations also contributed significantly to the increased disbursements.
For the first five months of the year, NG expenditures totaled P2.3 trillion, up 18 percent. Primary expenditures increased by nearly 20 percent year-on-year to P495.9 billion in May while year-to-date primary expenditures rising 15 percent to P1.9 trillion.
Interest payments rose to 48 percent to P61.1 billion in May, driven by additional debt incurred and higher interest rates on both domestic and foreign borrowings. Year-to-date interest payments totaled P321.6 billion, up 40 percent.
Net of interest payments, the NG recorded a primary deficit of P113.8 billion in May, up 41 percent.
