BUSINESS
Advocates Philippines
Philippines' Budget Deficit Well-Managed As Tax Revenues Surge
Photo credit: BIR
Manila, Philippines, September 24, 2025 — The National Government (NG) is reporting strong financial footing for the first eight months of the year, with total revenues climbing to PHP 3.09 trillion as of the end of August. This robust collection effort has kept the budget deficit in check, maintaining its trajectory well within the full-year target.
The primary engine of this growth has been tax collections, which accounted for 90.33% PHP 2.79 trillion of the total and expanded by 8.92% over the previous year.
Leading this surge is the Bureau of Internal Revenue (BIR), which sustained a strong year-over-year expansion, collecting PHP 2.14 trillion. This performance was boosted by higher collections across key tax types, including corporate and personal income tax, value-added tax, and excise tax on tobacco.
Meanwhile, the Bureau of Customs (BOC) added PHP 621.4 billion, an increase of 1.14%, attributing part of this uptick to intensified efforts against illicit trade.
Deficit Under Control
The substantial revenue haul kept the budget deficit manageable at PHP869.2 billion for the January-August period. This figure is comfortably within the PHP1.56 trillion revised full-year program for 2025, utilizing only 55.66% of the target.
Non-tax revenues also performed ahead of schedule, reaching PHP298.3 billion, already achieving 97.33% of the revised program. The Bureau of the Treasury (BTr) was a key contributor, with its income of PHP189.3 billion exceeding its upward-adjusted full-year target, driven by higher interest earnings and remittances from government agencies like PAGCOR and MIAA.
Spending Prioritized for Growth
In terms of spending, NG disbursement grew by 7.15% year-over-year to PHP3.95 trillion, representing 65.01% of the PHP6.08 trillion revised full-year program.
The resulting PHP285.0 billion primary deficit (net of interest payments) demonstrates the government's deliberate effort to channel resources toward priority programs and growth-enhancing expenditures aimed at improving the lives of Filipinos.
The primary engine of this growth has been tax collections, which accounted for 90.33% PHP 2.79 trillion of the total and expanded by 8.92% over the previous year.
Leading this surge is the Bureau of Internal Revenue (BIR), which sustained a strong year-over-year expansion, collecting PHP 2.14 trillion. This performance was boosted by higher collections across key tax types, including corporate and personal income tax, value-added tax, and excise tax on tobacco.
Meanwhile, the Bureau of Customs (BOC) added PHP 621.4 billion, an increase of 1.14%, attributing part of this uptick to intensified efforts against illicit trade.
Deficit Under Control
The substantial revenue haul kept the budget deficit manageable at PHP869.2 billion for the January-August period. This figure is comfortably within the PHP1.56 trillion revised full-year program for 2025, utilizing only 55.66% of the target.
Non-tax revenues also performed ahead of schedule, reaching PHP298.3 billion, already achieving 97.33% of the revised program. The Bureau of the Treasury (BTr) was a key contributor, with its income of PHP189.3 billion exceeding its upward-adjusted full-year target, driven by higher interest earnings and remittances from government agencies like PAGCOR and MIAA.
Spending Prioritized for Growth
In terms of spending, NG disbursement grew by 7.15% year-over-year to PHP3.95 trillion, representing 65.01% of the PHP6.08 trillion revised full-year program.
The resulting PHP285.0 billion primary deficit (net of interest payments) demonstrates the government's deliberate effort to channel resources toward priority programs and growth-enhancing expenditures aimed at improving the lives of Filipinos.
Sep 29, 2025
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