FX.co ★ Philippines Budget Deficit Largest in Over 2 Years

The budget deficit for the Philippine government broadened significantly to PHP 375.5 billion in March 2025, marking the highest level since December 2023. This represents a notable increase from PHP 195.9 billion recorded in March of the previous year. The reduction in government revenues, which decreased by 3.01% year-on-year to PHP 279.3 billion, can be attributed largely to a steep 69.36% drop in non-tax revenues. Concurrently, government expenditures rose sharply by 35.37%, reaching PHP 655 billion. This rise was predominantly fueled by increased spending on road infrastructure projects, ongoing operational needs, and various public protection services, alongside significant fiscal transfers to local government units. During the first quarter of 2025, the budget deficit expanded to PHP 478.8 billion, compared with PHP 272.6 billion in the same timeframe of 2024.