BIR gets bulk of DOF budget

MANILA, Philippines — The Bureau of Internal Revenue will receive more than half of the Department of Finance (DOF)’s proposed P37.8 billion for 2026, underscoring its central role in generating the bulk of government revenues.

About 55 percent of the finance department’s budget is earmarked for the tax bureau, which also covers the implementation of the Taxpayers’ Rights Program.

Meanwhile, the budget of the Bureau of Customs cornered 20 percent of the total budget, while the Bureau of the Treasury accounted for 14 percent.

The DOF’s total budget is only marginally higher than the current allocation by 1.1 percent, which the agency described as very small compared to the “herculean task” of fulfilling its wide-ranging fiscal responsibilities.

For 2026, the finance department is required to collect P13.65 billion a day in revenues, while simultaneously addressing a P4.51-billion deficit to sustain the government’s spending requirements.

The effort is intended to support the administration’s projected daily spending of P18.6 billion for the next fiscal year.

“The program aims to gradually reduce the government’s deficit and debt by 2028, while creating more jobs, increasing incomes and reducing poverty in the process,” the DOF said.

The agency’s proposed budget highlights its priority on workforce development and digital infrastructure. Under the new proposed budget, about 45 percent of the allocation is earmarked for personnel services.

The breakdown also shows that 38 percent of the proposed budget is allocated for maintenance and other operating expenses, around 17 percent for capital outlays and less than one percent for financial expenses.

Digitalization and modernization remain among the DOF’s top priorities, with P6.9 billion allocated to streamline processes, integrate systems and enhance service delivery across its attached agencies for greater efficiency.

For 2026, the total expenditure plan resulted in an over P10-trillion budget proposal, but this was reduced to P6.793 trillion, given the limited fiscal space.