The national government’s fiscal deficit widened to ₱784.4 billion in the first seven months of the year, a 22 percent jump compared with ₱642.8 billion in the same period last year, even as the budget gap narrowed in July alone.

Still, the year-to-date fiscal deficit remains “well within and on track” with the revised full-year ceiling of ₱1.56 trillion, according to the Bureau of the Treasury.

“This performance underscores the government’s commitment to support economic development while keeping within the bounds of prudent fiscal management,” the Treasury said.

Total revenues collected through July reached ₱2.73 trillion, 4.6 percent higher than last year’s ₱2.61 trillion. That figure is 60.5 percent of the revised full-year target of ₱4.52 trillion.

Tax collections made up the bulk at ₱2.45 trillion, a 9.7% increase from ₱2.24 trillion a year ago.

Collections from the Bureau of Internal Revenue, the country’s top tax-collection agency, jumped 12.5 percent to ₱1.89 trillion as of end-July from ₱1.68 trillion a year ago.

The Bureau of Customs, the country’s second-largest revenue agency, collected ₱544 billion from January to July, 1.5 percent higher than last year’s take of ₱535.9 billion at the end of July.

Meanwhile, non-tax revenues dropped 24.9 percent to ₱277 billion, due to a high base of one-off remittances in 2024.

Public spending from January to July expanded 8.3 percent to ₱3.52 trillion in the first seven months of the year from ₱3.25 trillion a year earlier. This stood at 57.8 percent of the revised full-year target of ₱6.08 trillion.

Of the year-to-date spending, ₱3 trillion went to primary expenditures, up 7.3 percent annually, while interest payments accounted for the remaining ₱521 billion, rising 14.1 percent from last year.

July gap narrows

The government’s budget deficit narrowed 34.4 percent to ₱18.9 billion in July alone, as revenue growth of 3.3 percent outpaced a one percent rise in spending.

Total revenues in July reached ₱472.3 billion, lifted by stronger tax collections from the BIR at ₱335.3 billion and the BOC at ₱85.2 billion, up 4.8 percent and six percent year-on-year, respectively.

“The BIR sustained its strong performance due to higher revenues from corporate income tax,” the Treasury said. “This is followed by personal income tax, tax on government securities, excise tax on tobacco products, percentage tax on banks and financial institutions, and documentary stamp tax.”

“Meanwhile, the BOC’s positive performance was boosted by a year-on-year increase in value-added tax and excise collections at 6.1 percent and 12.7 percent, respectively,” it added.

Non-tax revenues amounted to ₱49.3 billion in July, down 9.7 percent from a year earlier.

Spending in July inched up to ₱491.2 billion from ₱486.2 billion last year. This was boosted by higher National Tax Allotment releases to local government units, the annual block grant to the Bangsamoro Autonomous Region in Muslim Mindanao, interest payments and personnel services.