Budget deficit narrows to P158 billion

December 24, 2025 | 12:00am

MANILA, Philippines — The national government’s budget deficit narrowed to P157.6 billion in November, driven by a sharp decline in government expenditures, according to the latest data released by the Bureau of the Treasury.

Data showed the budget shortfall in November was 26 percent lower than the P213 billion booked in the same month last year.

Month-on-month, the latest figure is a huge turnaround from the P11 billion budget surplus in October.

Reyes Tacandong & Co. senior adviser Jonathan Ravelas said the pivot to a deficit reflected the catch-up disbursement for social infrastructure and social programs as agencies rush to meet year-end targets.

“We need better revenue mobilization and disciplined spending to avoid crowding private investment,” Ravelas said.

A budget deficit occurs when government expenditures exceed revenue collections, meaning the state spends more money than it generates.

Despite the decline in government expenditures in November, the administration’s revenue collection also slowed down.

Treasury data indicated that total revenue collection in November grew slowly by 0.7 percent to P340.7 billion from P338.3 billion in the same month last year.

The Bureau of Internal Revenue (BIR) remained the top contributor in November as collections increased by 2.7 percent to P254.3 billion from P247.6 billion a year ago.

The collections of the Bureau of Customs also increased by 3.3 percent to P74.9 billion from P72.4 billion in November last year.

Finance Secretary Frederick Go previously admitted that collection of the BIR and the BOC is softer than the projected yield of the national government, citing the extraordinary circumstances following the probe into the flood control issue.

However, non-tax revenues underperformed, declining by 41.6 percent to P9.3 billion from P15.9 billion.

From January to November, the budget deficit widened by 7.4 percent to P1.26 trillion from P1.18 trillion in the same period last year.

“The expansion for the period was underpinned by the 2.5 percent year-over-year growth in government expenditures, which outpaced the 1.09 percent increase in revenue collection,” the Treasury said.

Total revenue collections for the 11-month period stood at P4.15 trillion, a modest 1.1-percent increase from last year’s P4.1 trillion. Meanwhile, the total expenditures grew by 2.5 percent to P5.41 trillion from P5.28 trillion.

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