The country’s budget deficit rose by 43.1 percent to P174.9 billion in May, the Bureau of the Treasury (BTr) said Thursday.

This was higher by P52.7 billion than the level recorded in the same month last year.

From January to May, the budget deficit widened to P4048 billion or 24.06 percent higher compared with the level recorded last year.

The BTr said the budget deficit increased in May as government revenues grew slower at 14.59 percent compared with its expenditures at 22.24 percent.

Expenditures reached P557 billion in May, up from P455.7 billion recorded last year.

The bulk of the funds were spent by the Department of Public Works and Highways, Department of National Defense, Department of Social Welfare and Development and Department of Health.

The BTr added the national government disbursed more funds to local government units and government owned and controlled corporations or GOCCs.

Interest payments 47.8% more

Interest payments surged by 47.8 percent to P61.1 billion due to additional debt registered last year and higher interest rates of both domestic and foreign borrowings.

The Department of Finance said the government plans to borrow P2.57 trillion this year, of which 25 percent will be sourced from foreign debt.