FX.co ★ Philippines Budget Deficit Widens in June

The Philippines’ budget deficit widened to PHP 264.3 billion in June 2026 from PHP 241.6 billion a year earlier. Government revenues rose 2.46% to PHP 314.5 billion, supported by a 6.86% year-on-year increase in tax collections. This gain was partially offset by a 43.53% decline in non-tax revenues, largely reflecting lower income from the Bureau of the Treasury following the earlier remittance of dividends this year.

On the spending side, total expenditures grew 5.51% to PHP 578.7 billion. The increase was mainly driven by higher National Tax Allotment shares for local government units, larger subsidies to government-owned and -controlled corporations—particularly Food Terminal Inc. for the Rice-for-All Program—and direct payments from development partners to suppliers and contractors for foreign-assisted rail projects.

For the January–June period, the cumulative budget deficit widened to PHP 786.8 billion from PHP 765.5 billion in the same period a year earlier.