Manila: The national government's revenue collections and expenditures continued to grow in the first quarter of the year, data from the Bureau of the Treasury (BTr) showed. In its latest cash operations report released on Tuesday, the BTr stated that revenue collections rose by 6.90 percent to PHP998.2 billion from PHP933.7 billion in the first quarter of 2024.

According to Philippines News Agency, tax collections increased by 13.55 percent to PHP931.5 billion due to the strong performance of the Bureau of Internal Revenue and the Bureau of Customs. "The revenue agencies' sustained growth for the third consecutive month was driven by their ongoing revenue enhancement measures, particularly the intensified campaign against the use of fake receipts, intensified crackdown on illicit trade, digitalization, and improvements in tax payment facilitation, among other initiatives," the BTr said.

Non-tax revenues, on the other hand, amounted to PHP66.7 billion, lower than last year's PHP113.4 billion. The BTr attributed the decline to timing, as 18 Government-Owned and -Controlled Corporations (GOCCs) remitted PHP28.23 billion in early first quarter dividends in 2024 compared with only three GOCCs with PHP0.027 billion early dividends for the current year. However, the BTr expects non-tax revenues to improve in the coming months, with dividends from the GOCCs set to be remitted to the National Treasury starting May.

The BTr reported that government spending was on target at PHP1.5 trillion, or 23.89 percent of the full-year expenditure program. Expenditures in the first quarter were also higher by 22.43 percent than the recorded PHP1.21 trillion in the same period last year. "The strong spending performance can be attributed to the higher disbursements recorded in the Department of Public Works and Highways for its road infrastructure program and regular operating requirements, and in the Department of Social Welfare and Development for its various protective services programs," the BTr noted.

Significant fiscal transfers to local government units were made, including their National Tax Allotment shares, the Annual Block Grant to the Bangsamoro Autonomous Region in Muslim Mindanao, as well as Local Government Support Fund releases. The transfer of PHP32.8 billion to the Coconut Farmers and Industry Trust Fund in accordance with the mandated schedule of capitalization also contributed to the larger spending outturn, the bureau added.

Meanwhile, the BTr reported that for the first quarter of the year, the budget deficit amounted to PHP478.8 billion, 75.62 percent higher than the same period last year, but still in line with the PHP1.5 trillion deficit program for 2025.