The national government’s budget deficit narrowed sharply in July, thanks to faster revenue growth compared to expenditures, the Bureau of the Treasury (BTr) reported Thursday.
The July deficit fell 34.42 percent to PHP18.9 billion, down from PHP28.8 billion in the same month last year.
Revenue collections rose 3.26 percent to PHP472.3 billion, fueled by stronger performance from both the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC).
BIR collections hit PHP335 billion, up 4.8 percent, driven by higher corporate and personal income taxes, taxes on government securities, excise taxes on tobacco, bank and financial institution percentage taxes, and documentary stamp taxes.
Customs revenues climbed 6 percent to PHP85.2 billion, supported by a boost in value-added tax and excise collections, which grew 6.13 percent and 12.69 percent, respectively.
Non-tax revenues fell 9.66 percent to PHP49.3 billion, but this decline was offset by a remarkable 82.42 percent jump in BTr income to PHP36.3 billion, largely from dividends, interest income, and Manila International Airport Authority profit remittances.
On the spending side, disbursements edged up to PHP491.2 billion from PHP486.2 billion a year ago. The increase was partly driven by higher National Tax Allotment releases to local governments, the Annual Block Grant to the Bangsamoro Autonomous Region in Muslim Mindanao, interest payments, and personnel costs.
The BTr noted that spending in July was tempered by the timing of major disbursements from the Department of Public Works and Highways, Department of Social Welfare and Development, and Department of National Defense.
For the first seven months of 2025, the budget deficit totaled PHP784.4 billion, keeping the government on track to meet its revised full-year target of PHP1.56 trillion.
Revenue for January to July rose 4.82 percent to PHP2.7 trillion, representing 60.45 percent of the PHP4.52 trillion full-year program, while total expenditures reached PHP3.52 trillion, up 8.22 percent.
“The government remains committed to supporting economic growth while maintaining prudent fiscal management,” the BTr said.
