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The national government’s budget surplus decreased in April as a result of a sharp rise in public spending, which increased more quickly than government revenue collection, the Bureau of Treasury said on Thursday.
Data from the state-run Treasury Bureau showed that the national government’s budget surplus in April reached P42.7 billion, down P24.1 billion or 36.03 percent from P66.8 billion the previous year.
The year-to-date budget deficit has increased to P229.9 billion, or 12.66 percent more from last year.
Revenue performance
According to BTr, the total revenues collected in April reached P537.2 billion, 21.90 percent (or P96.5 billion) more than the P440.7 billion collected in the same month last year.
“The positive outturn for the month was propelled by higher year-over-year (YoY) growth in both tax and non-tax revenues,” BTr said.
“The increase in tax revenues was fueled by double-digit growth in the collections of revenue collecting agencies while the increase in non-tax revenues was due to strong dividend remittance,” the Treasury Bureau added.
Consequently, year-to-date revenue improved to P1.5 trillion, 16.80 percent or P211.6 billion more than the P1.3 trillion raised in the equivalent period a year ago.
The Bureau of Internal Revenue’s (BIR) collection rose by 12.65 percent or P42.5 billion to P378.5 billion (net of P334.0 billion tax refund) in April versus last year’s P336.0 billion due to “overperformance in all major tax types compared to the same period in 2023.”
Meanwhile, the Bureau of Customs collections increased to P80.7 billion, a P13.2 billion or 19.52 percent increase from the previous year’s outturn. BTr attributed the increase to BOC’s “cumulative collection” from January to April to P299.6 billion, growing by 6.47 percent or P18.2 billion on a year-on-year basis.
Bureau of the Treasury (BTr) income for the month surged to P64.0 billion, more than tripling the amount registered in the same month a year ago.
“The significant growth was primarily driven by the increase in dividend remittances as some Government- Owned and Controlled Corporations (GOCCs) already increased their remitted annual net earnings to 75% from the previously mandated 50% in compliance with the DOF directive,” BTr said.
Expenditures up
In April 2023, national government expenditures amounted to P494.5 billion, a 32.25 percent increase from P373.9 billion last year.
“The expansion was driven by higher releases of the National Tax Allotment and subsidies to [government-owned and controlled corporations], including releases to [Power Sector Assets and Liabilities Management] pursuant to the Murang Kuryente Act, as well as the release of the 4th tranche of capitalization of the Coconut Farmers Industry Trust Fund,” the BTr added. (TCSP)
