The Philippines’ budget deficit widened to PHP 106.3 billion in July 2026, up from PHP 18.9 billion in the same month a year earlier. Total revenues increased by 2.12% year-on-year to PHP 482.3 billion, as a 7.02% rise in tax collections was partly offset by a 39.92% drop in non-tax revenues. Total expenditures surged 19.82% to PHP 588.6 billion, driven by higher disbursements for social assistance programs aimed at mitigating the impact of the Middle East conflict, as well as increased spending on defense modernization and foreign-assisted rail transport projects. Over the first seven months of the year, the budget deficit reached PHP 893.1 billion, up from PHP 784.4 billion in the corresponding period of the previous year.