FX.co ★ Philippines Budget Deficit Widens in August

The Philippines’ budget deficit widened sharply to PHP 161.3 billion in August 2026, up from PHP 84.8 billion in the same month a year earlier. Total revenues fell 1.85% year-on-year to PHP 346 billion, as a 35.59% plunge in non-tax revenues more than offset a 0.32% increase in tax collections. Total expenditures jumped 16.0% to PHP 507.3 billion, driven primarily by higher health insurance outlays for low-income individuals, senior citizens, and other eligible patients, as well as increased tax transfers to local governments. Primary expenditures climbed 18.03% and accounted for 87.06% of total spending, while interest payments rose 3.98% amid higher debt servicing costs and foreign-exchange fluctuations. For the January–August period, the budget deficit reached PHP 1,054.3 billion, compared with PHP 869.2 billion in the same period a year earlier.