THE government’s budget deficit widened in July as spending again outpaced revenues, Bureau of the Treasury (BTr) data showed on Thursday.
The P106.3-billion shortfall — from revenues of P482.3 billion and expenditures of P588.6 billion — was higher than the year-earlier P18.9 billion but narrowed from June’s P264.3 billion.
The Treasury said a “ramp up in disbursements to support key government programs and projects pushed spending to 19.82 percent year-over-year growth while the base effect-driven dip in the non-tax uptake weighed down revenue growth to only 2.12 percent.”
The year-to-date budget balance remained in deficit at P893.1 billion, 13.85 percent higher than the P784.4 billion recorded in January-July 2025.
July revenues were 2.12 percent higher than the yearago P472.3 billion and June’s P314.5 billion. Spending, meanwhile, rose by 19.82 percent from P491.2 billion and P578.7 billion a year and month earlier.
Year to date, revenues and expenditures grew by 5.05 percent and 7.02 percent, respectively, to P2.87 trillion and P3.76 trillion from P2.73 trillion and P3.52 trillion.
Revenues from taxes grew by 7.02 percent to P452.7 billion in July from P423.0 billion a year earlier, and were up 5.66 percent to P2.59 trillion from P2.46 trillion year to date.
The Bureau of Internal Revenue (BIR) accounted for the bulk of July tax revenues at P358.4 billion, 6.92 percent higher than the P335.3 billion recorded a year ago.
“The BIR’s improved performance is due to better taxpayer services to support stronger compliance and boost collection,” the Treasury said.
To date, the agency’s collections grew 5.31 percent to P1.99 trillion from P1.89 trillion.
The Bureau of Customs, meanwhile, saw July collections rise by 7.48 percent to P91.6 billion from P85.2 billion a year earlier. This pushed the January-July tally up 7.25 percent to P583.4 billion from P544.0 billion.
“The growth was driven by the significant uptick in duties and VAT collection from imports primarily due to the stronger US dollar and higher crude oil price,” the Treasury said.
“In addition, the agency’s sustained collection was supported by improved customs procedures, intensified border protection measures, digital transformation initiatives, and closer collaboration with stakeholders,” it added.
The tax take from other offices rose by 5.9 percent to P2.7 billion but was 3.34 percent lower at P21.4 billion year to date.
Nontax revenues, meanwhile, markedly dropped by 39.92 percent to P29.6 billion in July from P49.3 billion a year earlier. Year to date, it slipped by 0.31 percent to P276.1 billion from P277 billion in January-July 2025.
Treasury collections alone dropped by 48.31 percent to P18.8 billion in July from P36.3 billion a year ago. This brought the seven-month tally to P201.5 billion, up 10.97 percent from P181.6 billion.
Other offices generated nontax revenues of P10.8 billion in July, down 16.38 percent from the year-earlier P13.0 billion. The seven-month total of P74.6 billion was lower by 21.78 percent from P95.4 billion.
Primary expenditures, meanwhile, accounted for P451.4 billion of spending in July, up 17.25 percent from P385.0 billion a year earlier.
Interest payments, which accounted for the rest, rose 29.14 percent to P137.2 billion from P106.2 billion.
Excluding interest payments, the national government recorded a primary deficit of P272.2 billion for the first seven months of the year, higher than last year’s deficit of P263.4 billion.
