2025 budget deficit swells to P1.58 trillionThe budget shortfall was 4.7 percent wider than the P1.51 trillion gap recorded in 2024, as expenditures slightly outpaced revenue growth, data from the Bureau of the Treasury (BTr) showed. Last year’s budget deficit also exceeded the government’s forecast of P1.56 trillion by 0.97 percent based on the Cabinet-level Development Budget Coordination Committee meeting in June 2025. A budget deficit occurs when government expenditures exceed revenue collections, meaning the state spends more money than it generates. This year, the economic team aims to bring the budget deficit to P1.61 trillion and cut the deficit-to-GDP ratio to 5.3 percent. Government expenditures rose by 1.8 percent to P6.03 trillion in 2025 from P5.93 trillion in 2024, outpacing revenue growth.
