The national government’s budget deficit narrowed to less than P250 billion in September, driven by a sharp decline in government expenditures, according to the latest data released by the Bureau of the Treasury (BTr).
Data showed that the Marcos administration recorded a budget shortfall of P248.1 billion in September, which is 9.2 percent lower than the P273.3 billion deficit posted in the same month last year.
Month-on-month, the latest figure is nearly three times larger than the P84.8 billion recorded in August.
A budget deficit occurs when government expenditures exceed revenue collections, meaning the state spends more money than it generates.
Despite a decline in government expenditure in September, a slowdown in the administration’s revenue collection prevailed.
Treasury data indicated that total revenue collection during the month slowed to P281.7 billion, representing a nearly six-percent decline from P299.7 billion in the same month in 2024.
The Bureau of Internal Revenue remained the top contributor in September as collections increased by 4.7 percent to P183 billion from P174.7 billion a year ago.
‘This was driven by increased collections from corporate income tax, personal income tax, value-added tax, excise tax on tobacco and percentage tax on banks or financial institutions,’ the BTr said.
Collections of the Bureau of Customs also increased by 5.25 percent to P80.3 billion during the month from P76.3 billion in September last year.
However, non-tax revenues underperformed, declining by 65.8 percent to P15.8 billion. This represents a P30.4-billion cut from P46.2 billion in September last year.
From January to September, the budget deficit widened by 15.1 percent to P1.12 trillion from P970.2 billion in the same period last year.
Total revenue collections for the nine-month period stood at P3.37 trillion, a surge of 2.24 percent from last year’s P3.29 trillion.
Meanwhile, the total expenditures were higher by 5.2 percent, at P4.48 trillion from P4.26 trillion in the same period last year.