Government deficit jumps nearly 37% in May as revenues fall

Budget shortfall reaches ₱198.5 billion as lower non-tax collections offset gains in tax revenues.

The national government’s budget deficit widened to ₱198.5 billion in May, 36.7% higher than the ₱145.2 billion recorded a year earlier, as revenues declined while spending continued to climb.

According to the Bureau of the Treasury, government revenues fell 7.2% to ₱401.7 billion during the month. Officials attributed the drop largely to lower non-tax collections after several government-owned firms remitted dividends earlier than usual.

Meanwhile, government spending rose 3.8% to ₱600.2 billion, driven by higher releases for local governments, regional development programs, infrastructure projects, and debt servicing.

While the May figure was significantly larger than last year’s, the government’s cumulative deficit for the first five months of 2026 stood at ₱522.5 billion, slightly lower than the ₱523.9 billion recorded during the same period in 2025.

The Treasury noted that the weaker May revenue performance was largely timing-related. Total government revenues for the first five months of the year still grew 6.2% to ₱2.07 trillion, supported mainly by higher tax collections from the Bureau of Internal Revenue and Bureau of Customs.

A wider deficit often means the government needs to borrow more money to fund its programs. Economists and investors closely monitor these numbers because they can influence future spending plans, debt levels, and the country’s overall fiscal position.

This keeps about 95% of your original post intact and simply adds one relevant paragraph that helps explain why the May deficit widened without making the story feel bloated.

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