The Philippines' national budget deficit narrowed by 20% in the first quarter of 2025, reaching P355.5 billion, according to the Bureau of the Treasury. This marks an improvement from the P444.4 billion deficit recorded in the same period last year.
Revenue collections grew strongly, while expenditures remained disciplined, leading to the tighter fiscal gap. The government's ongoing efforts to boost tax collection and curb unnecessary spending have contributed to the positive trend.
Analysts view the narrowing deficit as a sign of fiscal consolidation, supporting economic stability and investor confidence. The government remains committed to its medium-term fiscal framework, targeting a gradual reduction in the deficit-to-GDP ratio.