The Marcos administration’s budget deficit ballooned in November due to the contraction in government revenues and a substantial increase in public spending.

The Bureau of the Treasury reported on Thursday, Dec. 26, that the government’s budget deficit more than doubled in November, surging to P213 billion from P93.3 billion in the same period last year.

According to the Treasury, the significant increase in the fiscal gap was triggered by a 0.61 percent contraction in government revenues, which fell to P338.3 billion from P340.4 billion in November 2023.

This decline was primarily attributed to lower non-tax collections compared to the previous year, which included a one-time dividend remittance from the Bangko Sentral ng Pilipinas (BSP).

Additionally, a 27 percent rise in government expenditures to P551.3 billion, driven by increased spending on infrastructure, social programs, and personnel services, contributed to the widening deficit.

Despite the November dip, the Treasury said the national government remained on track to surpass its revenue goal for 2024.

Year-to-date collections reached P4.1 trillion by the end of November, representing 96.12 percent of the full-year target of P4.3 trillion and a 15.2 percent increase year-on-year.

The Bureau of Internal Revenue (BIR) reported a 17.77 percent year-on-year increase in collections for November, driven by higher income tax, value-added tax (VAT), excise taxes, and documentary stamp tax (DST) revenues.

The BIR attributed the strong performance to increased taxpayer compliance, adjustments in filing schedules, and favorable economic conditions.

However, the Bureau of Customs (BOC) posted a slight decline in collections, with November revenues down 1.69 percent year-on-year due to lower import duties and excise taxes.

Despite this, the BOC's year-to-date collections remain robust, exceeding the previous year's performance by 4.68 percent.

In November, non-tax revenues decreased due to the absence of the one-off BSP dividend remittance in 2023. However, year-to-date non-tax collections remain strong, showing a 45.6 percent increase compared to the same period last year.

On the other hand, government expenditures posted a jump in November, rising 27.13 percent year-on-year to P551.3 billion. This increase was attributed to higher spending on infrastructure projects, social programs, education, and personnel services.

"The larger National Tax Allotment shares of local government units and the release of special shares in the proceeds of national taxes also contributed to the faster November outturn," the Treasury statement noted.

Cumulative government expenditures for the first 11 months of 2024 reached P5.3 trillion, a 12.96 percent increase compared to the same period last year. This represents 91.78 percent of the revised full-year expenditure target of P5.8 trillion.