The Philippines' budget deficit has widened to a staggering 1.26 trillion pesos (approximately 21.4 billion USD) by the end of November, according to the latest figures from the Bureau of the Treasury (BTr). This represents a 7.38% increase from the same period last year, highlighting a concerning trend in the country's finances. The widening deficit is primarily attributed to the rapid growth in government spending, which rose by 2.49% year-on-year, outpacing the 1.09% increase in revenue collection. This disparity between spending and income is a critical factor in the country's economic outlook. Despite this, the BTr reassures that the deficit remains within the government's fiscal program, at 80.92% of the revised full-year target of 1.56 trillion pesos for 2025, indicating a commitment to prudent fiscal management and consolidation efforts. However, the question remains: how sustainable is this approach in the long term?
