The government’s coffers received a significant liquidity boost in the first two months of the year, as state-run entities remitted more than ₱90 billion in dividends, a critical buffer against global economic volatility.

According to the latest Bureau of the Treasury data, the surge was headlined by a record ₱59 billion injection from the Bangko Sentral ng Pilipinas (BSP).

The central bank’s contribution was a sharp reversal from 2025, when its remittances plunged by nearly two-thirds to ₱18.9 billion from ₱53.2 billion the previous year. That contraction had been the primary driver behind a net decline in total dividends received by the national government in the prior fiscal period.

As of the end of February, the central bank accounted for nearly two-thirds of the ₱91 billion in total dividends remitted by government-owned and -controlled corporations.

Meanwhile, Land Bank of the Philippines followed as the second-largest contributor, providing ₱25 billion, or roughly 27.5 percent of the total.

Lynette V. Ortiz, Landbank president and chief executive officer, said in an interview on Tuesday that the ₱25 billion represents an initial installment of a total ₱32.4 billion commitment for the year, with the remainder scheduled for the second half.

The lender’s high dividend payout follows its strongest financial performance to date, with net income rising 25 percent to ₱44 billion in 2025. This growth was underpinned by robust loan expansion and disciplined risk management, allowing the bank to retain its position as a top-tier remitter after overtaking the central bank in the dividend rankings last year.

The influx of corporate payouts propelled the government’s non-tax revenue to ₱111.5 billion in February, a more than sixfold increase from ₱17.4 billion a year earlier. This windfall helped the Department of Finance manage a widening expenditure base, keeping the monthly budget deficit nearly flat at ₱171.2 billion.

For the first two months of 2026, the fiscal gap narrowed 94.4 percent to ₱5.8 billion compared to the ₱103.1 billion deficit recorded during the same period in 2025.

Finance Secretary Frederick D. Go said the improved fiscal position strengthens the economy’s ability to withstand external shocks, specifically those stemming from energy price fluctuations and geopolitical tensions in the Middle East.

While the government has yet to release a formal quarterly fiscal program for 2026, Go noted that the current trajectory sets the stage for a stable first-quarter performance.

Despite the early-year gains, the administration faces a challenging path toward long-term fiscal consolidation. Last year, total dividends from state firms fell 17.2 percent to ₱114.6 billion. Regional surveillance body ASEAN+3 Macroeconomic Research Office estimates the Philippines' fiscal deficit narrowed to 5.6 percent of gross domestic product in 2025.

While AMRO expects the gap to shrink to 5.4 percent this year, that remains wider than the government’s official target of 5.3 percent, suggesting that while the immediate cash flow is healthy, structural fiscal pressures persist.