President Ferdinand Romualdez Marcos Jr. signs into law the General Appropriations Act (GAA) of 2024 or the national budget at the Ceremonial hall of the Malacañan Palace on December 20, 2023. KJ Rosales, PPA pool

MANILA -- The Philippines' budget deficit for June fell to P209.1 billion in June, from P225.4 billion the year before as revenues grew faster than government expenses, the Bureau of Treasury said Thursday.

But in the first half of 2023, the budget gap grew to P613.9 billion, 11.27 percent higher than figures in the same period last year.

In June, revenues reached P296.5 billion, higher than the P267.3 billion raised in June 2023. The Bureau of Internal Revenue’s (BIR) collection for June grew by 4.71 percent to P172.5 billion, while the Bureau of the Treasury brought in P7.4 billion. 

Collections by the Bureau of Customs also went up slightly to P74.6 billion.

Meanwhile, government expenses rose to P505.6 billion, higher by 2.62 percent from last year's numbers, as the state spent more on capital outlay projects of the Department of Public Works and Highways.

The government also spent more on the Revised Armed Forces of the Philippines Modernization Program, the preparatory activities of the Commission on Elections for the 2025 National and Local Elections, and the higher National Tax Allotment shares of local government units.    

Budget deficit narrows in March, but Q1 still widens                 

The Philippines racked up large budget deficits and saw its debt levels rise in recent years as it emerged from the pandemic and embarked on an ambitious infrastructure push.

Economic managers however said these were not a cause for worry as the country’s fundamentals remained sound.