FX.co ★ Philippines Budget Deficit Widens in June

In June 2025, the Philippines experienced an expansion in its budget deficit, which reached PHP 241.6 billion, compared to PHP 209.1 billion in the same month of the previous year. Government revenues saw a 3.5% increase year-on-year, amounting to PHP 306.9 billion. This growth was largely propelled by a 12.4% rise in tax revenue, which counterbalanced a 43.3% decline in non-tax collections. Concurrently, government expenditures rose by 8.5%, totaling PHP 548.5 billion. This increase was mainly influenced by higher National Tax Allotment shares for local government units (LGUs), the Annual Block Grant for the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), personnel services, and interest payments. Analyzing the second quarter of 2025, the national budget deficit expanded to PHP 765.5 billion, up from PHP 613.9 billion during the same period the previous year.