The national government posted a ₱68.4 billion surplus in January 2025 as revenues outpaced spending, according to the Bureau of the Treasury (BTr).
However, the January 2025 surplus was smaller than the ₱88 billion recorded in the same month in 2024.
Last year, only January, April, and October posted surpluses, while the other eight months saw deficits.
Total revenues in January increased to ₱467.2 billion from ₱421.8 billion in January last year. This is equivalent to a ₱45.4 billion increase, or a nearly 11 percent increase.
Of these total earnings, the majority or nearly 94 percent were accounted for by tax revenues. It increased by nearly 14 percent or ₱53.2 billion to ₱437.5 billion, from ₱385.2 billion a year ago.
The Bureau of Internal Revenue (BIR), the country’s main tax-collection agency, contributed over 81 percent of the total tax revenues—₱355.1 billion. The BIR income for January 2025 increased by ₱46.7 billion or over 15 percent from the agency’s previous earnings at ₱308.4 billion.
The Bureau of Customs (BOC), the country’s second-largest tax collection agency,
contributed over 18 percent to the total tax revenues—₱79.3 billion. This saw a ₱5.9 billion or over eight percent increase from last year’s ₱73.4 billion.
Notably, overall non-tax revenues declined by ₱7 billion or over 19 percent from ₱36.6 billion in January last year to ₱29.6 billion.
Income BTr and other non-tax income both declined by an average of ₱1 billion this year. Income from Malampaya more than halved at ₱433 million in January from ₱992 million.
Fees and charges also saw a steep decline by nearly 83 percent or ₱4.4 billion to ₱906 million from ₱5.3 billion a year earlier.
Meanwhile, the national government’s total expenditures rose to ₱398.8 billion from ₱333.9 billion. This is equivalent to a ₱64.9 billion or over 19 percent increase.
Of these total expenditures, national government disbursements accounted for over half or over 51 percent. In January, the government disbursed ₱203.9 billion, up by over 12 percent or ₱22.6 billion from ₱181.3 billion last year.
More than 26 percent of the total expenditures went towards interest payments—₱104.4 billion. It increased by ₱30.2 billion or nearly 41 percent from last year’s ₱74.2 billion.
Nearly 22 percent of the government spending went to allotment to local government units (LGUs) at ₱86.1 billion. It increased by ₱7.7 billion or nearly 10 percent from ₱78.4 billion last year.
Additionally, the government spent ₱4.4 billion in subsidies, a massive jump from zero last year.
Last year, the government exceeded its targeted fiscal deficit of ₱1.48 trillion when it reached ₱1.51 trillion, 5.7 percent of the country’s gross domestic product (GDP).
For 2025, the Marcos administration raised its budget deficit ceiling to ₱1.54 trillion, 5.3 percent of GDP. This figure would make the widest deficit, in terms of amount, in three years if achieved.
“The budget surplus is seasonal every January in recent years, after large budget deficits every December in recent years, but to be followed by budget deficits again after January,” Michael Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC), said.
“Additional tax revenue collections based on existing tax laws or through new tax reform measures and even higher tax rates would be needed, especially if inflation becomes more benign and better controlled since higher taxes could add to inflationary pressures,” Ricafort noted.
Given the increased spending by the Marcos administration, Ricafort said that “there may also be a need for more fiscal reform measures to reduce it.”
He said one of the measures involves government rightsizing and tax reforms to boost recurring tax revenues, reduce the budget deficit, and limit the need for more borrowing.
He added that the major goal is to lower the government's debt-to-GDP ratio below the 60 percent international threshold to ensure long-term fiscal sustainability and benefit future generations.