The national government recorded a budget surplus of ₱67.3 billion in April, marking a 57.5 percent jump from the same month last year, as tax collections rose by 7.8 percent—boosted by stronger revenue from corporate, personal income, and value-added taxes (VAT) collected by the Bureau of Internal Revenue (BIR).

The Bureau of the Treasury (BTr) reported that total revenue collections in April reached ₱522.1 billion, showing a slight 2.8-percent drop due to the timing of non-tax collections. However, this was balanced by a strong 7.8-percent increase in tax revenues.

The government’s collections for the first four months totaled ₱1.5 trillion, rising by 3.4 percent or ₱49.3 billion from the same period in 2024.

Data showed that this growth was mainly driven by an 11.5-percent increase in tax revenues, which made up 94 percent of total collections, while non-tax revenues accounted for the remaining six percent.

Given this performance, the Marcos administration said it is “on track to hit its collection goals this year.”

The BIR, the country’s largest revenue collection agency, collected ₱420.5 billion during the month, marking an 11.1-percent increase compared to last year.

According to the BTr, this uptick in the BIR collections was driven by “higher collections from corporate income tax (CIT), VAT, and personal income tax (PIT).”

“The surge in CIT collections was primarily due to the annual tax filing deadline for corporations in April. Meanwhile, PIT and VAT collections improved on the back of the BIR’s intensified efforts to simplify tax filing through enhanced digital services,” it further said.

These measures, combined with increased excise tax revenues, boosted the BIR’s year-to-date collections to P1.1 trillion, which climbed by 14.5 percent from last year.

Meanwhile, the Bureau of Customs (BOC), the country’s second-largest revenue-collecting agency, collected ₱74.7 billion in April. It dropped by 7.5 percent compared to last year, “partly due to the fewer working days for the month and the impact of lower import volumes amidst global trade challenges.”

However, the BTs noted that the BOC’s overall collection for the four-month period reached ₱306.1 billion, exceeding last year’s performance by 2.2 percent.

Non-tax revenues in April also dropped to ₱24.1 billion year on year, down 68.1 percent from 2024. The government blamed this decline on government-owned and controlled corporations (GOCCs) that mostly have not yet remitted dividends, unlike last year.

As such non-tax collections as of end-April stood at ₱90.7 billion, 51.9-percent lower than last year’s four-month total of ₱188.8 billion.

End-April budget shortfall

The Marcos administration, meanwhile, posted a cumulative budget deficit of ₱411.5 billion, widening nearly 79 percent from the same period last year. The Treasury said this was due to a faster 13.6-percent increase in public spending aimed at fueling the economy and supporting priority programs of the Marcos Jr. administration.

Meanwhile, expenditures for April slowed by eight percent, totaling ₱454.8 billion compared to ₱494.5 billion last year. The decrease was “largely due to lower interest payments and subsidies to government corporations, particularly for the National Irrigation Administration (NIA).

Additionally, the timing of the capitalization transfer for the coconut farmers and industry trust fund affected April’s spending growth, as this transfer happened in March this year but in April last year.

But still, cumulative disbursements for the year still grew by 13.6 percent, reaching ₱1.93 trillion.

Primary spending in April amounted to ₱408.3 billion, down 4.4 percent from last year’s level of ₱427.0 billion. Meanwhile, total primary spending for the first four months of the year reached P1.6 trillion, reflecting a 14.2-percent increase from the same period last year.

Interest payments during the month stood at ₱46.4 billion, down 31.2 percent year-on-year, mainly due to changes in the timing of payments for domestic and foreign loans during the holidays.

But total interest payments as of end-April soared to ₱287.4 billion, marking a 10.4-percent increase from last year.