Budget gap shrinks on low spending

Sluggish government expenditure, constrained by ongoing probes into public works, helped contain the 10-month budget deficit but raised concerns over the effective delivery of key economic stimulus programs.

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The Bureau of the Treasury reported on Wednesday, Nov. 25, that the Marcos administration’s fiscal deficit reached P1.11 trillion in January to October 2025, with spending growth lagging despite the surge in monthly collections that kept the gap within its full-year program.

In October alone, the national government recorded a budget surplus of P11.2 billion, a 76 percent leap from the P6.3 billion surplus in the same month a year earlier.

According to the Treasury, this strong closing month helped contain the 10-month deficit to 70.83 percent of the revised P1.56 trillion full-year ceiling, underscoring the government's commitment to fiscal consolidation despite slower growth figures.

The end-October financing gap was primarily driven by restrained disbursements, as expenditures grew by a modest 3.9 percent in the first 10 months, outpacing revenues that edged up by only 1.13 percent.