NATIONAL GOVERNMENT (NG) budget deficit narwas condemned in November as spending was cut for the fourth month in a row, and revenue growth remained weak amid a corruption scandal.
Data from the Bureau of the Treasury (BTr) showed the budget deficit fell by 26.02% to P157.6 billion in November from P213 billion in the same month last year.
This was a reversal of the P11.2-billion surplus in October.
In November, government spending decreased by 9.61% to P498.3 billion from P551.3 billion in the same month last year.
Principal expenses (net of interest payments) decreased by 13.13% to P421 billion in November, while interest payments increased by 15.95% to P77.3 billion.
November marked the fourth consecutive month in which spending fell on an annual basis, starting with a 0.74% decrease in August after a corruption scandal involving flood control projects was made public.
The scandal has dampened economic activity and public spending, particularly on infrastructure, and put pressure on revenue collection.
Consolidated net income increased by 0.72% to P340.7 billion in November from P338.3 billion in the same month last year.
Tax revenue, which includes a number of collections, increased by 2.81% to P331.4 billion in November from P322.4 billion in the same month in 2024.
The Bureau of Internal Revenue’s (BIR) collection increased by 2.7% to P254.3 billion in November from P247.6 billion last year.
Bureau of Customs (BoC) collections increased by 3.35% to P74.9 billion in November from P72.4 billion last year.
On the other hand, nontax income decreased by 41.58% to P9.3 billion in November from P15.9 billion in the same month last year, “mainly due to the absence of one-time income from last year.”
BTr’s income fell 29.3% to P5.6 billion in November, while income from other offices fell 53.79% to P3.7 billion.
Chief Economist Rizal Commercial Banking Corp. Michael L. Ricafort said the small deficit was mainly caused by the decrease in government spending.
“(This) may reflect disciplined spending among anti-corruption measures and other changes to improve governance standards by looking at flood control projects that have reduced government spending as a quick response to prevent the risk of corruption,” he said in a Viber message.
11-MONTHLY FEES
In the January to November period, the budget deficit widened to P1.26 trillion from a deficit of P1.18 billion last year, amid single-digit growth in spending and revenue collection.
“The overall fiscal deficit stands at only 80.92% of the FY (fiscal year) 2025 revised full-year target of P1.56 trillion, which shows the government’s commitment to fiscal prudence and consolidation,” said the Treasury.
For the 11-month period, expenditures stood at P5.41 trillion, up 2.49% from P5.28 trillion last year. This was already 89% of the P6.08-trillion full-year expenditure plan.
Principal expenses rose 0.8% to P4.61 trillion at the end of November, while interest payments rose 13.49% to P801 billion.
Meanwhile, total deposits during the January to November period increased by 1.09% to P4.15 trillion from P4.1 trillion last year.
This represents 91.79% of the revised full-year plan of P4.52 trillion.
“Growth for the period was driven by a 7.03% year-on-year (P249.5-billion) increase in tax collections, which more than offset the P204.6-billion reduction in nontax revenues due to the effect of one-time receipts in 2024,” BTr said.
In the 11-month period, tax revenue jumped 7.03% to P3.8 trillion, which is 90.14% of the P4.21-trillion target.
BIR collections rose 8.92% to P2.91 trillion as of late November, counting 90.25% of the P3.22-trillion target for the full year.
Customs collected P859.5 billion in the 11-month period, up 1.12% from last year. This was 89.65% of the revised P958.7-billion plan for the year.
Nontax revenue fell 36.85% to P350.6 billion as of the end of November.
“Nevertheless, the total for January to November 2025 has already exceeded the revised FY 2025 plan of P306.5 billion by 14.4% (P44.1 billion), supported by the better-than-expected performance of Bureau of the Treasury revenues and collections from other countries.fincluding private funds, fees and fines, and grants according to their terms throughout the year,” said the Treasurer.
BTr’s income fell by 7.52% to P215.2 billion at the end of November, while other offices’ income fell by 58.01% to P135.4 billion.
The deficit – net of interest expenses – fell 1.77% to P463.2 billion in 11 months from P471.5 billion a year ago.
“The decrease in this period may be due to a temporary delay in the implementation of certain flood control programs during the ongoing investigation. related to allegations of corruption,” said BTr.
Mr. Ricafort said there is a “good chance” that the government will reach an estimated deficit of P1.56 billion this year, citing fiscal and tax reforms and anti-corruption efforts to increase revenue and curb waste.
In the coming months, he said strict anti-corruption measures could slow down government spending, but this would help reduce the deficit and reduce borrowing needs. – Aubrey Rose A. Inosante
