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Philippines budget deficit hits record US$26.5 billion as corruption probe bites

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2026年3月10日
1 min read
Asuncion Billion bites budget Bureau of the Treasury Central Bank of the Philippines corruption Corruption Perceptions Index deficit flood-control projects hits IMF Philippines Probe record Ricafort Rizal Commercial Banking Corporation Transparency International Union Bank of the Philippines US President Donald Trump US26.5

Philippines budget deficit hits record US$26.5 billion as corruption probe bites

An investigation into allegedly corrupt flood-control projects worth billions of pesos is beginning to ripple through the Philippines’ public finances, slowing infrastructure spending and adding uncertainty to the government’s investment-driven growth strategy.

The budget deficit widened 4.68 per cent to 1.58 trillion pesos (US$26.5 billion) in 2025, Treasury Bureau data showed, surpassing 2024’s record of 1.51 trillion pesos.

Despite slowing disbursements amid tighter scrutiny of public works projects, the deficit still breached the government’s 1.56 trillion-peso ceiling.

At 5.63 per cent of gross domestic product by year-end, the deficit was an improvement on 2024’s 5.7 per cent but remained above the government’s 5.5 per cent target.

Rescuers evacuate a woman from her flooded home in Iligan, Lanao del Norte province on February 6. Photo: AFP

This shows the corruption investigation is already taking its toll on government spending and investor confidence, analysts say.

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