February budget deficit widened to ₱171B, says BTr

Bureau of the Treasury

MANILA, Philippines — The government’s budget deficit hit P171.4 billion in February, widening by 4.11 percent from the P164.7 billion recorded in the same month last year as rising expenditures outpaced revenues.

Data released by the Bureau of the Treasury (BTr) on Wednesday showed that revenue collections for the month grew by 12.39 percent, or P27.8 billion, to P251.8 billion.

Expenses, however, rose by 8.8 percent to P423.2 billion from P34.5 billion last year.

In February, the increase in revenues was fueled by a 10.9-percent increase in tax collections and a 37.11-percent surge in non-tax revenues.

For the first two months of 2025, total revenue collections climbed to P718.9 billion, exceeding last year’s figure by 11.32 percent, indicating the government’s improving fiscal performance.

READ: Gov’t swings back to budget deficit in February on infra spending

Taxes remained the largest revenue source, totaling P671.9 billion, a 12.64-percent increase compared to the same period in 2024.

Non-tax revenue, which made up 6.54 percent of total collections, amounted to P47.0 billion.

This reflected a 4.67-percent decrease, or P2.3 billion, from the P49.3 billion recorded in the same period last year.

BIR, BOC collections

The Bureau of Internal Revenue (BIR) increased its collection in February by 15.31 percent, or P68.3 billion, to total P514.7 billion.

This growth was primarily driven by higher Value Added Tax collections, followed by increases in Corporate Income Tax (CIT), Personal Income Tax (PIT), final withholding tax on government securities, and the Documentary Stamp Tax (DST).

This brought the BIR’s collections for the first two months of the year to P514.7 billion, reflecting a 15.31-percent increase, or 68.3 billion.

“The BIR’s continued progress in revenue performance is credited to its ongoing improvements in tax payment systems and collection efficiency,” the BTR said in a statement.

Meanwhile, the Bureau of Customs (BOC) collected P71.8 billion in the same month, marking a 1.71 percent increase, or P1.2 billion, from the same month last year.

This brought the BOC’s combined revenue in January and February to P151 billion, surpassing the P144 billion recorded during the same two-month period last year by 4.91 percent or P7.1 billion.

“BOCs’ continuous modernization, border protection, and capacity development efforts have enabled the bureau to maintain its positive performance in the first two months of the year,” said the BTR.

READ: Gov’t sets higher BIR, BOC revenue collection target for 2025

Expenditures

The revenue increase, however, was overshadowed by the increase in national government disbursements to P423.2 billion in February, rising by 8.88 percent, or P34.5 billion, compared to the same period last year.

“The expansion was credited to higher capital expenditures of the Department of Public Works and Highways, particularly from progress billings and payment of right-of-way acquisition for its various infrastructure projects,” the BTR said.

“Higher disbursements recorded in the Department of Health and Department of Social Welfare and Development for their banner health and protective services programs, respectively, also contributed to the growth of February disbursements,” it added.

These pushed the total spending for the first two months of the year to P822 billion, marking a 13.76 percent increase, or P99.5 billion, from the P722.5 billion disbursed during the same period in 2024.