towards Katherine K. Chan
The budget of the Philippines It was reduced in September, the Bureau of Treasure (BTR) said on Thursday, as fraud investigating flood control projects reduced government spending.
The fiscal gap hit 9.22% year-on-year to P248.1 billion, month-on-month, almost triple from August’s P84.8-billion contraction. The total amount of government spending was 7.53% at P529.8 billion from a year earlier, reflecting a decrease in project spending.
Costs used for basic capital – Total spending minus interest income – Fell 10.22% to P448.1 billion, while interest income increased to 101.7 billion.
Revenue Collection was also weak, slipping 5.99% to P281.7 billion as nontax revenue came in at about a third. Treasury income fell by 21.73% to P7.8 billion, while income from othereftextiles decreased by 77.82% to P8 billion.
Tax revenues provided some relief, growing 4.91% year-on-year to P265.9 billion. The bureau of internal revenue (BIR) collected P183 billion, up 4.74%, while the Bureaus of Customs (BOC) receipts increased by 5.25% to P80.3 billion.
The primary deficit, which excludes interest payments, was reduced by 15.67% to P166.4 billion.
A small gap may indicate that it slows down the social imbalance “especially in the infrastructure between the continuation of the flood in the use of the flood in the use of the studies of the Philippines, said the message of Viber.
From January to September, the budget deficit increased by 15.15% year-on-year to P1.117 trillion, or 71.6% of the full government target of P1.56 Expenditures made 5.18% to P4.484 Trillion – about 73.7% of the P6.082-Trillion spending plan.
Core spending during the period increased by 3.76% to P3.818 trillion, while interest payments jumped by 14.15% to P665.8 billion.
Revenue increased by 2.24% to P3.367 Trillion, equivalent to 74.49% of the P4.52-Trillion target. Tax collections grew by 8.56% to P3.053 Trillion, while Nontax Reseneues fell by 34.71% to P314.1 billion.
The BIR collected P2.323 Trillion, up 10.88%, and customs ‘That Rose 1.59% to P701.7 billion. The Treasury outlined stronger tax action for higher corporate and personal income tax, as well as additional tax, tobacco and bank tax benefits.
Despite the decline, Nontax revenue is already exceeding its full-year goal, supported by state-owned companies and revenue from gaming and airport operations.
As of September, the primary deficit increased by 16.66% to P451.4 billion.
Michael L. Ricafort, chief economist at Rizal Commerce Banking Corp., said spending could remain subdued amid the lifting of government contracts.
“There is a risk of slower government spending in the coming months amid anti-corruption measures that could slow economic growth,” he said in a Viber message.
Mr Rivera said the severity of the small deficit remained uncertain. “While lower spending can temporarily improve the numbers, it is not a substitute for growth capital or healthy investments,” he added.
BMI, a unit of fitch solutions, expects the Philippines’ budget to slow this year as spending remains constrained by election-related restrictions and weak infrastructure deployment.
It proves the deficit to reach 5.5% of the gross domestic product (GDP), compared to the ceiling of the Education Budget Coordination Committee (DBCC). That would be a modest improvement from the previous 5.7%.
“We forecast a 5.5% Philippine fiscal deficit by 2025 as spending is overwhelmed by financial system costs,” BMI said on Oct. 22 Be careful.
Government revenue collection since August exceeded monthly targets, but spending continued to lag behind expectations due to a slowdown in pre-election reforms and the slow rollout of infrastructure projects.
Former Budget Secretary Amenah F. Pangandaman warned that spending on infrastructure could reduce profits as the Department of Public Works and Highways faces investigations into flood control projects.
BMI expects the debt gap to narrow further by 5.4% next year, helped by initial progress and new trade agreements with the US. However, the rating rises slightly above the DBCC% target.
The report noted that the tariff agreement under the US-Philippines trade agreement could reduce the government’s revenue by P30 billion, after Manila agreed to remove American export duties such as American cars.
Customs Commissioner Ariel F. Nepomuceno earlier said the government could lose P27 billion to P30 billion in revenue this year due to the zero-tariff policy.
BMI added that the proposed P6.793-Trillion budget for 2026 could drag down efforts to mobilize funds, as plans to expand the tax base remain limited.
The government aims to maintain a deficit of P1.56 trillion this year and gradually reduce it to P1.55 trillion, or 4.3% of GDP, by 2028.
