BTr: Budget deficit climbs on higher gov’t spending

The National Government's budget deficit widened to P264.3 billion in June, up 9.4 percent from P241.6 billion a year earlier, as government spending grew faster than revenue collections, the Bureau of the Treasury (BTr) said.

In a Thursday afternoon statement, the BTr said fiscal performance remained broadly in line with the administration’s program.

Government expenditures rose 5.5 percent to P578.7 billion, driven by higher National Tax Allotment releases to local government units, subsidies to state-run firms, including funding for the Rice-for-All Program, and payments for foreign-assisted rail transport projects. Revenues, meanwhile, increased 2.5 percent to P314.5 billion, supported by stronger tax collections.

For the first six months of 2026, the Treasury said the fiscal deficit reached P786.8 billion, up 2.8 percent from P765.5 billion a year earlier but slightly below the government's P788.2 billion program.

Revenue collections climbed 5.7 percent to P2.39 trillion, broadly matching the midyear target, while expenditures increased 4.9 percent to P3.18 trillion, equivalent to 99.95 percent of the programmed level.

The BTr said the Bureau of Internal Revenue collected P210.7 billion in June, up 5.1 percent, while first-half collections reached P1.63 trillion, although still 1.4 percent below its target. The Bureau of Customs posted P86.2 billion in June collections, up 11.9 percent, with its first-half haul of P491.9 billion exceeding its program by 1.5 percent.

Non-tax revenues fell 43.5 percent in June to P15.1 billion, mainly due to lower BTr income following the earlier remittance of dividends this year. However, first-half non-tax revenues rose 8.3 percent to P246.5 billion, surpassing the government's target.