Manila: The National Government (NG) recorded a budget surplus of PHP67.3 billion in April this year due to the slowdown in spending, data from the Bureau of the Treasury (BTr) showed. In its latest cash operations report released on Tuesday, BTr said revenue collections slightly declined to PHP522.1 billion in April from PHP537.2 billion a year ago mainly due to the timing in non-tax collections.
According to Philippines News Agency, the temporary decline was offset by the 7.84 percent growth in tax revenues which reached PHP498 billion. In particular, the Bureau of Internal Revenue's (BIR) collection reached PHP420.5 billion, up 11.10 percent driven by higher corporate income tax (CIT), value-added tax (VAT), and personal income tax (PIT) collections. "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," the BTr said. The increase in VAT collections was also supported by the BIR's crackdown on the use of fake receipts and its campaign against illicit trade.
The Bureau of Customs (BOC), on the other hand, collected PHP74.7 billion in April, down by 7.48 percent due to the fewer working days for the month and the impact of lower import volumes amid global trade challenges. Non-tax revenues, meanwhile, amounted to PHP24.1 billion, down by 68.08 percent year-on-year as most government-owned and controlled corporations have yet to remit dividends.
In April, the NG's expenditures went down by 8.03 percent to PHP454.8 billion from PHP494.5 billion last year due to lower interest payments and subsidies to government corporations, particularly for the National Irrigation Administration. The timing of transfer of the capitalization requirement of the Coconut Farmers and Industry Trust Fund also weighed down on the growth of April spending. The BTr said that last year, the transfer was taken up in April while this year's capitalization requirement was released in March.
For the first four months of the year, the budget balance recorded a deficit of PHP411.5 billion, up by 78.98 percent, due to the expansion in public spending to fuel economic activity and support priority programs of the Marcos administration. Despite the decline in revenues in April, the BTr said the government is on track to hit its collection goals this year as year-to-date revenue collection amounted to PHP1.5 trillion, 3.35 percent higher than last year. The higher collection was primarily driven by the 11.49 increase in tax revenues, which accounted for 94.03 percent of total collections. Non-tax revenues made up the remaining 5.97 percent or PHP90.7 billion. Spending, meanwhile, went up by 13.57 percent to PHP1.932 trillion.
