National Government The Treasury Department said Tuesday that the rise in fiscal revenue offsets the decline in state spending, the Treasury Department said Tuesday that the decline in fiscal revenue was due to the decline in state spending, the Treasury Department said Tuesday.
The Ministry of Finance data showed a surplus of 67.3 billion pesos in April, a shift in the 37.573 billion deficit in March.
The surplus is also 57.51% higher than the P4.27 billion surplus in April 2024.
This is the first budget surplus since January’s P68.36 billion surplus.
April revenue fell from 537.2 billion Philippine pesos a year ago to 522.1 billion, “due to the time of non-Natax collections alone.”
Fenax revenue in April fell to 68.08% to pesos 24.1 billion from P75.4 billion in the same month in 2024.
“This is because most government-owned and controlled companies (GOCCs) are not different from the same period last year,” it said.
In April, BTR revenue fell 77.42% to Phillips 14.5 billion, while othersfICES fell 15.64% to pesos 9.6 billion.
The Treasury reported last week that the Treasury had remitted a dividend worth 76 billion pesos to the Treasury as of May.
On the other hand, tax revenue in April increased by 7.84% to 461.8 billion pesos in the same month of 2024 to 461 million pesos.
The majority of tax revenue comes from the Bureau of Internal Income (BIR), which rose 11.1% from Phillips 378.5 billion a year ago to 420.5 billion.
“This powerful performance is driven by higher collections collected by corporate income tax (CIT), VAT (VAT) and individualsCome to tax (pit).
It added that the improvement in personal income tax and VAT collection is attributed to BIR’s efforts to simplify tax filing through digital services.
“The General Administration’s crackdown on the use of forged receipts and its continued campaign also supports the increase in VAT collections Oppose illegal trade,” BTR said.
Customs Agency revenue fell 7.48% from P8 billion a year ago to P74.7 billion.
“This is partly due to the impact of fewer working days this month and the low import volume amid global trade challenges,” the Ministry of Finance said.
In April, U.S. President Donald J. Trump announced that benchmark tariffs for all of his trading partners were 10%, as well as reciprocal tariffs in certain countries, including the Philippines. Reciprocal tariffs have been suspended until July.
Meanwhile, government spending in April fell 8.03% from P494.5 billion in the same period last year.
BTR attributes the decline in state spending to lower interest payments and attributes subsidies to government companies, especially the National Irrigation Administration.
“The timing of capitalization requirements for transfer time for coconut farmers and industry trust funds is also related to the increase in spending in April. The transfer took place in April last year, while this year’s capitalization requirements were released in March,” it said.
Primary expenditure (referring to total expenditure minus interest payments) fell from 4.37% to 408.3 million shares in April, down from Phillips 427 billion in the same period last year.
Interest payments in April this year fell 31.19% to Pesos 46.4 billion from P67.5 billion in the same month in 2024.
The annual decline in interest payments is attributed to a shift in home securities and external loan timing associated with Lenten and Eid’l-Fitr holidays.
“Basically, a given annual budget surplus is expected for the annual tax/declaration month period during the annual tax/report month,” said Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp.
Oikonomia Advisory and Research, Inc. Reinielle Matt M. Erece, an economist, said the decline in spending could be due to an election ban that banned some public spending, which began in late March and ran until Election Day.
“But, because government spending is expected to support the economy this year, this surplus may not last long,” he said.
A 4-month gap
Meanwhile, NG’s finance Deficit expands to P411.5 billion From January to April, 78.98% is larger than the P22999 billion a year ago, as the speed Expenditures exceed income.
BTR said the deficit has surged due to “a faster expansion of public spending, promoting economic activity and supporting the Marcos Jr. government’s priority program.”
In the first four months, state spending rose 13.57% to P1.93 trillion from P1.7 trillion a year ago.
Primary expenditure rose 14.16% to $1.64 trillion, while interest payments rose 10.35% to P287.4 billion.
On the other hand, between January and April, revenue fell from P1.47 trillion a year ago to 1.52 trillion.
Taxes accounted for 94.03% of total revenue, up 11.49% to 1.43 trillion.
BIR revenue rose 14.5% to P1.11 trillion in the first four months as campaigns against false receipts, illegal trade, digital tax filings and higher excise tax revenues intensified.
As of April, the customs collection rate rose 2.16%, to 306.1 billion p306.1 billion.
Meanwhile, between January and April, Fennex’s revenue fell 51.94% from Phillips 188.8 billion a year ago to Phillips 90.7 billion.
NG’s deficit cap limit for 2025 is P1.54 trillion shares, accounting for 5.3% of GDP. – Aubrey Rose A. Inosante
