The fiscal gap in the first five months grew 29.41 percent to P523.9 billion, which the Bureau of Treasury (BTr) attributed to continued infrastructure spending and debt payments.

The budget deficit continues to balloon in May at P145.2 billion, which was down from P174.9 billion in the same month last year as revenues jumped by 13.35 percent, the BTr reported.

BTr added that the decline in the May figure reflected moderation in government expenditure by 3.81 percent due to May elections’ legal restrictions.

“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,” according to the national treasury.

BTr said May’s total revenue reached P433.1 billion as tax and non-tax collection surged, pushing up the cumulative revenue by 5.41 percent to P1.953 trillion.

Tax revenues in May rose by 10.5 percent to P1.752 trillion, while non-tax revenues jumped by 40.9 percent to P110.2 billion.

The Bureau of Internal Revenue (BIR) posted a 13.8 percent growth to P1.354 trillion in tax collection as of May compared to last year, reflecting P242.7 billion in the fifth month or 10.71 percent increase compared to May 2024.

“The bureau’s intensified collection effort, strengthened campaign against fake transactions, ongoing digital transformation, and continued crackdown on illicit tobacco trade have contributed to the improved performance for the said month,” BIR said.

However, the Bureau of Customs posted slower growth in revenues collection as lower rice and electric vehicle tariffs brought down May level by 6.9 percent to P75.7 billion. Cumulatively, its revenues inched up by 0.22 percent to P381.7 billion.

The Bureau of the Treasury contributed P83 billion in May, more than quadrupling its P20.2 billion income recorded in the same month last year.

Meanwhile, non-tax revenues surged by 40.9 percent to P110.2 billion due to higher dividend remittances from Government-Owned and Controlled Corporations.

However, cumulatively, the non-tax income dropped by 24.75 percent due to several one-off remittances last year.

Higher expenditures

Cumulatively, total expenditures grew by 9.71 percent to P2.477 trillion, consisting of P557 billion recorded in May or 3.81 percent higher compared to the same month last year.

BTr attributed the higher total spending to higher interest payments, National Tax Allotment releases to Local Government Units and Annual Block Grant to the Bangsamoro Autonomous Region in Muslim Mindanao.

The government agency added the growth included the second tranche of salary adjustments of qualified civilian government employees under Executive Order 642.