Philippine budget deficit rises to P523.9 billion

MANILA, June 30 ------ The Philippines posted a budget deficit of P145.2 billion in May, bringing the total shortfall from January to May to P523.9 billion, the Bureau of Treasury said.

Treasury noted that the figure for the month of May was lower than the P174.9 billion posted in the same month last year. However the Jan-May shortfall was still 29.4 percent higher than in the same period in 2024, as the government ramped up spending on infrastructure and social services, Treasury said. "The National Government remains on track to meet its deficit target for the year through prudent fiscal management and efficient use of resources, in line with its Medium-Term Fiscal Program," the agency said.

From January to May, the government collected P1.953 trillion in revenues, which was 5.4 percent higher than the P1.853 trillion it collected in the same period in 2024. Expenditures however, continued to outpace revenues, hitting P2.477 trillion from January to May, which was 9.7 percent higher than in the same period last year.

The Philippines borrows money from domestic and foreign creditors to make up for the fiscal deficit. Debt has been rising in recent years as the country moves to modernize its infrastructure. In April, the country's national debt hit P16.75 trillion--a figure that would have been higher if the peso's appreciation during the period had not reduced the value of the external debt.

Source: news.abs-cbn.com