25.06.202607:29:46UTC+00Philippines Budget Deficit Widens in May

The Philippines’ budget deficit widened to PHP 198.5 billion in May 2026, up from PHP 145.2 billion in the same month a year earlier. Government revenues declined by 7.2% year-on-year to PHP 401.7 billion, mainly reflecting reduced dividend remittances from government-owned and -controlled corporations (GOCCs) after many of these dividends were remitted earlier in the year. In contrast, expenditures increased by 3.8% year-on-year to PHP 600.2 billion in May 2026, driven by higher interest payments on public debt, larger transfers to local government units, funding for the Bangsamoro region and local government support programs, and disbursements for foreign-assisted rail and road infrastructure projects. Over the January–May period, the cumulative budget deficit edged down slightly to PHP 522.5 billion from PHP 523.9 billion in the same period of the previous year.