The Philippines’ budget deficit widened to P523.9 billion from January to May this year, driven by increased government spending on infrastructure and social services, the Bureau of the Treasury reported on Friday.
While the May deficit alone dropped to P145.2 billion—lower than the P174.9 billion recorded in the same month last year—the overall shortfall for the first five months still marked a 29.4 percent increase compared to the same period in 2024.
“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 in a statement.
Government revenue collections rose to P1.953 trillion in the first five months, reflecting a 5.4 percent increase year-on-year. However, expenditures outpaced collections, growing 9.7 percent to P2.477 trillion.
To cover the gap, the country continues to borrow from both domestic and international lenders. As of April, the national debt stood at P16.75 trillion. The figure could have been higher, if not for the peso’s recent appreciation, which helped ease the value of foreign debt.
