The national government posted a budget deficit of P198.5 billion in May 2026, a 36.73-percent increase from the P145.2 billion shortfall recorded in the same month last year, according to data from the Bureau of the Treasury (BTr).
The widening gap was driven by a 7.24-percent year-on-year decline in revenues and a 3.80 percent increase in government spending.
BTr attributed the drop in collections mainly to the earlier remittance of Government-Owned and Controlled Corporation (GOCC) dividends in previous months, which shifted non-tax inflows away from the usual May schedule.
Despite the monthly increase in the deficit, the cumulative shortfall for January to May 2026 slightly improved to P522.5 billion, down 0.26 percent from the same period in 2025.
Total revenues for May reached P401.7 billion, lower than the P433.1 billion posted a year earlier. However, year-to-date collections rose to P2.07 trillion, up 6.17 percent, supported by stronger tax and non-tax performance in earlier months.
Tax revenues accounted for 88.84 percent of total collections and increased by 5.14 percent year-to-date. Non-tax income, meanwhile, made up 11.16 percent and posted a 15.17-percent gain over the same period.
The Bureau of Internal Revenue (BIR) collected P279.1 billion in May, up 15 percent from a year earlier, aided by the extension of the tax filing deadline from April 15 to May 15, 2026.
The Bureau of Customs (BOC) also posted growth, collecting P80 billion, a 5.71-percent increase driven by improved valuation practices and stronger enforcement measures despite lower import volumes and temporary suspension of excise taxes on LPG and kerosene.
Cumulative government expenditures rose to P2.60 trillion as of end-May, up 4.81 percent from the same period last year, reflecting higher interest payments, transfers to local government units, allocations to the Bangsamoro region, and infrastructure-related disbursements supported by development partners.
For May alone, total spending reached P600.2 billion, a 3.80-percent increase year-on-year, driven by expanded subsidy releases and debt service obligations.