MANILA - The Philippines’ budget deficit rose to P1.2 trillion at the end of October as spending continued to outstrip revenues, the Bureau of Treasury said on Thursday.
The January to October budget shortfall was 27.9 percent or P262.8 billion higher than the budget gap posted in the same period last year and is at 65 percent of the P1.9 trillion 2021 revised program, Treasury said.
During the 10-month period, the government spent P3.31 trillion, but generated just P2.37 trillion.
Revenue growth was also slower at 5 percent compared to the 11.5 percent expansion in spending.
For October however, Treasury noted that revenues grew 10.9 percent, while spending growth was slower at 9.6 percent.
The Philippines has been borrowing heavily to finance its COVID-19 response and its ambitious infrastructure program. Finance Secretary Carlos Dominguez III has said that the government expects to borrow P3 trillion this year, and P2.25 trillion in 2022.
At the end of September, the national government’s debt had climbed to P11.92 trillion, up 27.2 percent from the same month last year.
Government economic managers however have insisted that debt levels remain manageable.