MANILA — The national government’s budget deficit slightly narrowed in the first five months of 2026 as revenue collections continued to post growth, according to data released by the Bureau of the Treasury (BTr).

In its latest cash operations report, the BTr reported that the budget shortfall stood at PHP522.5 billion from January to May, lower than the PHP523.9 billion recorded during the same period in 2025.

Government revenues rose by 6.17 percent to PHP2.07 trillion from PHP1.95 trillion a year earlier.

Tax revenues accounted for PHP1.84 trillion, or 88.84 percent of total collections, while non-tax revenues contributed PHP231.4 billion, representing 11.16 percent.

Collections by the Bureau of Internal Revenue (BIR) reached PHP1.42 trillion, reflecting a 4.94-percent increase from the PHP1.35 trillion collected in the first five months of last year.

“This improvement was largely supported by higher collections from personal income tax, other domestic taxes and value-added tax,” the BTr said.

Meanwhile, collections by the Bureau of Customs (BOC) climbed to PHP405.7 billion from PHP381.7 billion in the comparable period last year.

Non-tax revenues also posted growth, increasing by 15.17 percent year-on-year to PHP231.4 billion.

Government spending during the January-to-May period totaled PHP2.60 trillion, higher than the PHP2.48 trillion recorded in the same period in 2025.

For May alone, total revenues amounted to PHP420.7 billion, down 7.2 percent from PHP433.1 billion in the same month last year. The decline was attributed to lower non-tax collections following the earlier remittance of dividends by government-owned and controlled corporations.

BIR collections in May reached PHP279.1 billion, up 15.01 percent from PHP242.7 billion in May 2025.

The BTr said the increase was partly due to the extension of the tax filing and payment deadline from April 15 to May 15, 2026.

“In addition, BIR reforms such as the Taxpayer Portal for the Large Taxpayers Service, Registration Seal Badge and QR-enabled Certificate of Registration for online businesses, Ease of Closing Business reform, and measures to implement the new mining royalty regime under Republic Act No. 12253 also aided in boosting collections,” the BTr said.

BOC collections for May rose by 5.71 percent to PHP80 billion, supported by improved valuation procedures and strengthened revenue collection efforts despite lower import volumes and the temporary suspension of excise taxes on LPG and kerosene.

Non-tax revenues, however, fell to PHP39.4 billion during the month due to lower income from the Treasury, largely because of the timing of dividend remittances.

Government disbursements in May increased by 3.80 percent to PHP600.2 billion.

The rise in spending was mainly attributed to higher interest payments, National Tax Allotment shares for local government units, the Annual Block Grant for the Bangsamoro Autonomous Region in Muslim Mindanao, releases under the Local Government Support Fund, and direct payments by development partners for foreign-assisted rail and road infrastructure projects.