The Philippine government posted a budget deficit of P869.2 billion at the end of August, around 56 percent of the revised full-year target of P1.56 trillion for 2025.
This reflects controlled fiscal management despite a 7.2 percent year-on-year increase in government spending, which reached P3.95 trillion in the first eight months.
Primary expenditures, excluding interest payments, amounted to P3.37 trillion, exceeding last year’s outturn by 5.9 percent. Interest payments during the period totaled P584.1 billion, accounting for 15 percent of total disbursements.
Government revenues stood at P3.09 trillion, growing 3.1 percent compared to the same period last year. Tax collections made up 90 percent of total revenues, reaching P2.79 trillion, an 8.9 percent increase. The Bureau of Internal Revenue led tax revenue growth with an 11 percent increase, generating P2.14 trillion, driven by corporate income tax, personal income tax, value-added tax, and excise taxes.
The Bureau of Customs recorded P621.4 billion in collections, a 1.1 percent increase, aided by intensified efforts to combat illicit trade. Non-tax revenues reached P298.3 billion, nearly hitting 97 percent of the full-year target, boosted by the Bureau of the Treasury’s P189.3 billion income from interest earnings, dividends, and government shares in Philippine Amusements and Gaming Corp. and Manila International Airport Authority profits.
The government continues to prioritize growth-enhancing programs while maintaining fiscal discipline to keep the budget deficit manageable.
