Budget surplus at P67 billion in April

MANILA, Philippines — The recent tax season and the government’s lower spending pushed the country to a budget surplus of P67 billion in April, the Bureau of the Treasury said.

Data from the Treasury showed that the government posted a higher budget surplus of P67.3 billion in April, 57.5 percent above the P42.7 billion recorded in the same month last year.

This is the second time this year that the government posted a surplus after the P68.36 billion recorded in January.

The month of April is typically an excess amid the tax season following the annual income tax return filing.

A budget surplus means that the government earned more than what it spent during a given time. The extra money can either be used to pay off debts or be invested in other programs.

For the four-month period, however, the government incurred a higher budget deficit of P411.5 billion, surging by almost 80 percent from the P229.9 billion in the same period last year.

Total revenue collection in April slipped by 2.82 percent to P522.1 billion as against the P537.2 billion in the same month last year. Overall revenues were pulled down due to the timing of non-tax collections.

The bulk or 95 percent of the revenues came from tax collections at P461.8 billion, up by eight percent.

The haul of the Bureau of Internal Revenue (BIR) grew by 11 percent to P420.5 billion due to better collections from corporate and personal income taxes after the annual tax filing deadline last month.

Value-added tax collections also picked up following the BIR’s crackdown on the use of fake receipts and its continued campaign against illicit trade.

The BIR was three percent short of its P432 billion target for the month.

The Bureau of Customs, on the other hand, saw its collection slip by 7.48 percent to P74.7 billion from P80.7 billion, partly due to the fewer working days for the month and the impact of lower import volumes amid global trade challenges.

Non-tax revenues dropped by 68 percent to P24.1 billion in April as most state-run corporations have yet to remit their dividends.

Total revenues for January to April, nonetheless, grew by 3.35 percent to P1.52 trillion.

Meanwhile, government spending in April slowed by eight percent to P454.8 billion from P494.5 billion in 2024.

The Treasury said the decline was largely due to lower interest payments of P46.4 billion, slipping by a little over 30 percent from P67.5 billion last year.

This was due to the shifting of the timing of payments of both domestic securities and external loans related to several holidays in April.

The government likewise reduced subsidies to government corporations, particularly for the National Irrigation Administration, while the timing of transfer of the capitalization requirement of the Coconut Farmers and Industry Trust Fund weighed down last month’s spending.

Primary expenditures at P408.3 billion accounted for 90 percent of the total spending, down by 4.37 percent.

For the four-month period, government expenditures still rose by almost 15 percent to P1.93 trillion.