The Philippine government returned to a budget deficit in February following a surplus at the beginning of the year.

According to data from the Bureau of the Treasury, the government reverted to a budget deficit of P164.7 billion in February from a brief surplus of P88 billion in January.

Additionally, February's figure was a 55% rise from the P106.4 billion deficit in February 2022.

Over the two months, the budget deficit also rallied by 27% to P76.7 billion from P60.6 billion as government spending exceeded revenue collection growth, The Philippine Star reports.

The government is expected to record narrower budget deficits or potentially reach another surplus within the next few months. This is due to the tax collection season, during which the administration anticipates higher revenues.

The country's finance secretary, Ralph Recto, has acknowledged that the budget surplus recorded in January will unlikely continue in the months ahead, particularly for the remainder of the year.

"I don't expect a surplus by the end of the year. I'm just being cautious. For as long as we hit our revenue and expenditure targets, I'm happy with that," Recto stated

Total revenue collection in February rose by 5.73% to P224 billion compared to P211.9 billion in the same month last year, as non-tax revenues fell.

As much as 94% of revenues stemmed from tax collections at P211.3 billion, a 9% rise. Meanwhile, non-tax collection declined by 26% to P12.7 billion in February.

In addition, the Bureau of Internal Revenue recorded a 6.65% increase in its haul, reaching P138 billion. Meanwhile, the Bureau of Customs witnessed a 12% rise in its collection, rising to P70.6 billion from P62.9 billion year-on-year.

Moreover, year-to-date cumulative revenue collections increased by 15% to P645.8 billion, whilst government spending edged up 22% to P388.7 billion from P318.2 billion.

A total of P340.9 billion in primary expenditures made up 88% of total spending, a rise of close to 20%.