DBM shrugs off yawning budget hole

“There’s nothing to worry about” was the Department of Budget and Management’s (DBM) reaction on the budget deficit that ballooned to P411.5 billion in the first four months.

DBM said the shortfall remains within the annual fiscal program and does not pose a cause for concern.

In an interview with the DAILY TRIBUNE, DBM Undersecretary Goddes Libiran clarified that the four-month deficit accounts for only 26.7 percent of the programmed P1.537-trillion full-year deficit for 2025.

“The bottom line is that fiscal numbers are in line with the government’s fiscal program,” Libiran said.

“The numbers are therefore consistent with the country’s fiscal consolidation strategy of bringing down both the deficit-to-GDP ratio and the debt-to-GDP ratio over the medium term.”

The national government reported a budget deficit of P411.5 billion for the year until April, nearly 79 percent higher than the deficit posted in the same period last year.

According to Libiran, the increase in spending early in the year is consistent with the government’s policy of ensuring the timely and, in some cases, early implementation of programs, activities and projects.

“This ensures that the corresponding benefits redound to the targeted beneficiaries and to the economy in general,” she said.

Fiscal performance explained

Revenue collections from January to April reached P1.5202 trillion, up 3.35 percent compared to the same period in 2024. Tax revenues in April alone rose 7.84 percent year-over-year to P498.0 billion, with the Bureau of Internal Revenue (BIR) collecting P420.5 billion, supported by income and value-added tax collections.

However, non-tax revenues declined by 68.08 percent in April to P24.1 billion, due in part to delayed remittances from government-owned and -controlled corporations (GOCCs), according to the Bureau of the Treasury.

Expenditures in April totaled P454.8 billion, a 8.03 percent decrease year-on-year, primarily due to a 31.19 percent drop in interest payments. From January to April, total expenditures reached P1.9317 trillion, reflecting a 13.57 percent increase from the same period last year.

Libiran emphasized that the government is committed to maintaining fiscal discipline while continuing investments in key sectors.

“With fiscal discipline, authorities are determined to keep both revenues and spending in check and remain faithful to the program,” she said. “This ensures the government would still have the resources for investing in infrastructure, human capital, and good governance.”

She also reaffirmed the DBM’s commitment to transparency and accountability.

“DBM’s strong commitment to transparency and open government will always provide an avenue to hold the government accountable,” Libiran added.