Philippines trims July budget deficit to PHP 18.9 billion

The National Government recorded a budget deficit of PHP 18.9 billion in July 2025, down 34.42 percent year-on-year as revenues grew faster than spending, according to the Bureau of the Treasury.

Total revenues reached PHP 472.3 billion, up 3.26 percent from the same month last year, while expenditures rose just 1.02 percent to PHP 491.2 billion.

The smaller gap brought the cumulative fiscal deficit for January to July 2025 to PHP 784.4 billion, keeping it well within the revised full-year program of PHP 1.56 trillion.

The Bureau of Internal Revenue collected PHP 335.3 billion in July, up 4.83 percent year-on-year, with gains driven by corporate and personal income taxes, taxes on government securities, excise taxes on tobacco, and documentary stamp taxes.

The Bureau of Customs generated PHP 85.2 billion, rising 6 percent year-on-year due to higher value-added tax and excise collections.

Non-tax revenues totaled PHP 49.3 billion, down 9.66 percent from last year, though income from the Bureau of the Treasury surged 82.42 percent to PHP 36.3 billion on strong dividend remittances, interest income, and profit shares.

Year-to-date revenues stood at PHP 2.73 trillion, or 60.45 percent of the PHP 4.52 trillion full-year program, with tax revenues accounting for nearly 90 percent of collections.

Government disbursements in July reached PHP 491.2 billion, driven by higher tax allotments to local governments, block grants to the Bangsamoro region, interest payments, and personnel services.

Spending was tempered by the timing of big-ticket projects from the Department of Public Works and Highways, Department of Social Welfare and Development, and Department of National Defense.

Total disbursements for January to July reached PHP 3.52 trillion, equivalent to 57.82 percent of the PHP 6.08 trillion full-year spending plan.

Primary expenditures accounted for PHP 3 trillion, up 7.26 percent year-on-year, while interest payments rose 14.1 percent to PHP 521 billion.

The government posted a primary surplus of PHP 87.3 billion in July, compared with PHP 50.6 billion a year earlier, reducing the year-to-date primary deficit to PHP 263.4 billion.