The Department of Finance (DOF) reported an increase in the national government's budget deficit in May as government spending was much higher compared to the revenue collections.
During the month, the Marcos administration’s fiscal deficit amounted to P174.9 billion, representing a substantial 43.10-percent surge compared to the P122.2 billion gap recorded in May of the previous year.
Based on the Bureau of the Treasury report, this upturn was primarily driven by a 22.24-percent surge in expenditures, which exceeded the 14.59-percent growth in revenues
Total expenditures in May reached P557 billion, indicating a 22.2-percent increase from the P455.7 billion spent in the same period last year.
Within this expenditure, interest payments notably rose by 47.7 percent, totaling P61.1 billion compared to P41.3 billion in the same period the previous year.
Additionally, other expenses, including infrastructure investments, posted a 19.6-percent increase to P495.9 billion from P414.3 billion.
Likewise, government revenue faced an increase of P382.1 billion to P333.4 billion in May of the current year.
The Treasury report also revealed that both the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) experienced increases in revenue collections compared to the previous year.
The BIR, serving as the main tax agency of the government, collected P219.2 billion in May, a three-percent surge from the P213.3 billion collected during the same period last year.
Similarly, the revenue collected by BOC increased by four percent, amounting to P81.3 billion compared to P78 billion in the previous year.
In the first five months of this year, the national government's budget deficit swelled to P404.8 billion, a 24-percent increase compared to the P326.3 billion recorded in the same period last year.
At end-May, revenues rose by 16 percent to P1.853 trillion, while expenditures grew by 18 percent to P2.257 trillion.
The financing gap from January to May accounted for 27.2 percent of the Marcos administration's deficit ceiling of P1.484 trillion, equivalent to 5.6 percent of the country's economy.