The budget deficit eased to P248.1 billion in September, down from P273.3 billion in the same month last year, as revenue growth outpaced spending, the Department of Finance reported Thursday.
Revenues climbed 10.9 percent year-on-year to P281.7 billion, driven by stronger tax collection from the Bureau of Internal Revenue, which was up 4.7 percent, and the Bureau of Customs, which rose 5.3 percent. Non-tax revenues, however, dropped 65.8 percent to P15.8 billion.
Expenditures rose at a slower 5.2 percent to P529.8 billion, helping narrow the budget gap. The government attributed the modest spending increase to lower disbursements across several agencies compared to last year.
From January to September, the cumulative deficit reached P1.12 trillion, up from P970.2 billion in the same period of 2024, but still within the revised full-year target of P1.56 trillion.
Analysts said the narrower deficit in September suggests improving fiscal discipline and better revenue performance, giving the government more room to fund infrastructure and social programs without breaching its fiscal targets.
