Final week, the Bureau of the Treasury launched the Money Operations Report (COR) for July 2025. Right here, I evaluate the entire for January-July 2023, 2024 and 2025, respectively. All items in billion pesos:
Complete revenues: 2,271.9, 2,606.9 and a pair of,732.5, or a rise of solely 125.6 in 2025. The Bureau of Inner Income (BIR) has collected 1,492.3, 1,681.8 and 1,889.4, or a rise of 207.6 in 2025.
The Bureau of Customs (BOC) underperformed with collections of 506.5, 535.9 and 544.0, or a rise of solely 8.1. Huge underperformance in January-June 2025, however final July, BOC collected 85.2 versus a mean of solely 76/month in April-June. So new BOC Commissioner Ariel Nepomuceno has delivered in his first month in workplace. Congratulations Commissioner Nepomuceno, maintain it going.
The non-tax revenues suffered a giant decline: 255.3, 368.7 and 277.0, or a decline of 91.7 this 12 months. It’s because “different non-tax” like remittances by authorities companies have considerably expanded in 2024 and never in a position to maintain it this 12 months: 63.0, 143.6 and 73.7, a decline of 69.9.
Expenditures have elevated quicker: 2,871.4, 3,249.7 and three,516.9, or a rise of 267.2 this 12 months. The enlargement got here primarily from nationwide authorities disbursements: 1,859.0, 2,100.0 and a pair of,229.5, or a rise of 130.0 this 12 months. The allotment to native authorities items have elevated too: 538.2, 590.4 and 670.0, or a rise this 12 months of 79.3.
Curiosity fee alone of our excessive public debt retains rising too: 346.0, 456.7 and 521.0, or a rise of 64.4 this 12 months. Our curiosity fee excluding principal amortization within the first seven months of 2025 was 2.5/day, that’s large.
Sooner enlargement in expenditures and slower enlargement in revenues means the finances deficit has expanded too: 599.5, 642.8 and 784.4, or a rise of 141.7 this 12 months.
Greater deficit means greater financing or borrowing wanted: 928.6, 851.9 and 1,402.5, a rise this 12 months of 550.6. We maintain borrowing excessive, the expenditures and subsidies stay excessive, even with none financial or finance or virus disaster.
That’s one indicator of fiscal irresponsibility by many businesses, the Division of Public Works and Highways (DPWH) being on highlight due to a whole bunch of billions of pesos misplaced yearly as a consequence of wastage if not outright corruption and stealing.
See this report from The Philippine Star: “P118.5 billion a 12 months misplaced to flood management corruption – DOF” (Sept. 3). It quoted there Finance Secretary Ralph Recto on the Improvement Price range Coordination Committee (DBCC) briefing on the Senate, stating in disappointment, “Elevating revenues is not any joke. Then you will notice that it doesn’t go to the proper tasks and the welfare of the individuals. Some even turn into non-existent. Due to ghost tasks, our economic system has misplaced P42.3 billion to P118.5 billion… Possibly if that cash was spent higher, we might have reached six % development.”
Sure, elevating extra revenues is much more tiring than elevating spending and subsidies. In the course of the finances name for 2026, Division of Price range and Administration (DBM) Secretary Amenah Pangandaman stated that DBM acquired P10.1 trillion in complete spending request from all businesses. Horrible. The entire finances this 12 months is just P6.3 trillion and businesses requested practically P4 trillion improve in only one 12 months.
Philippines’ “deep state” at work, spend-spend-spend with out regards for the hostile fiscal influence like the large soar within the deficit, in borrowings and in debt fee each principal and curiosity. And it’s not solely in DPWH however in lots of businesses, each nationwide and native. So DBM and the remainder of the financial crew disallowed many finances enlargement request and submitted a complete of P6.8 trillion to Congress for 2026.
My quick notes on the continuing DPWH corruption scandals.
One, the time period “flood management” is incorrect as a result of nobody can management flood, management rains, management lava flows, and so on. They go together with gravity. The suitable time period must be “flood facilitation.”
Two, creeks, rivers and lakes ought to have common dredging to make them deeper and maintain extra water throughout flash flood. Drainage measurement must be expanded, deeper and wider, so small-diameter drainage must be plucked out and changed with wider drainage system.
Three, obstructions to common flood move must be eliminated and this consists of elimination of squatter settlements in riverbanks, beside creeks, and beneath bridges. This may increasingly sound “politically incorrect” and “insensitive” the fee to lives and properties of city flash flooding is way greater.
4, authorities should purchase low-lying areas from non-public fingers and convert these into deep mini-lakes, extra flood water to go there then be pumped out when the rains have stopped.
5, these public tasks shall be pricey however helpful. Rechannel public spending on wasteful local weather conferences, travels and junkets. “Rising ocean” from international warming and melting polar ice stays fictional however “rising rivers” are precise, actual and annual occasions and issues. We should always put together for the latter, not the previous.
