MANILA - The Philippines’ budget deficit hit P123.9 billion in November, which was 3.71 percent or P5 billion lower compared to the same month last year, the Bureau of Treasury reported on Tuesday.

Treasury said that the fiscal gap narrowed as government revenues grew 16.57 percent, outperforming the 10.24 percent increase in expenditures in November.

“Consequently, the cumulative budget deficit as of end-November slowed to P1.2 trillion, 7.23 percent (P96.3 billion) lower compared to the budget gap posted in the equivalent period last year and was at 75 percent of the P1.7 trillion full-year program,” Treasury said.

Revenues hit P331.1 billion, which was P47 billion higher than in November 2021.

From January to November, taxes contributed P3 trillion or 90 percent to the total while P317.7 billion came from non-tax sources. The Bureau of Internal Revenue raised P2.2 trillion, up 12.56 percent over the same period a year ago. The Bureau of Customs meanwhile collected P789.2 billion, 35.31 percent higher than the same period in 2021.

Malacanang said “good economic stewardship by the administration of President Ferdinand R. Marcos Jr.” led to the shrinking of the deficit.

Marcos took office at the end of June, while the first half of the year was still under the administration of President Rodrigo Duterte.

The budget deficit ballooned in the last two years as the government spent heavily for its pandemic response, and to finance Duterte’s ambitious infrastructure push.

To finance the gap, the government also borrowed heavily from both domestic and foreign lenders, sending the national debt to a record P13.63 trillion as of end-October.

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