The government posted a P42.7 billion budget surplus in April, lower than the P66.8-billion recorded in the same period last year, the Bureau of the Treasury said Thursday.
Data showed that government spending surged 32.25-percent in April, outpacing the 21.90-percent growth in government revenue collection.
Revenue collection reached P537.2 billion in April, surpassing the P440.7 billion collected in April 2023 by 21.90 percent or P96.5 billion. This was driven by higher year-on-year growth in both tax and non-tax revenues.
The Treasury said, however, the four-month budget deficit widened by 12.66 percent or P25.8 billion to P229.9 billion from a year ago.
The Bureau of Internal Revenue (BIR) collection rose 12.65 percent or P42.5 billion to P378.5 billion (net of refunds) in April compared to last year. The bureau’s collection growth was due to an overperformance in all major tax types.
Bureau of Customs collections in April were recorded at P80.7 billion, reflecting a P13.2-billion or 19.52-percent increase from the previous year.
The Bureau of the Treasury (BTr) income surged to P64.0 billion in April, more than tripling the amount registered in April 2023. This growth was driven by increased dividend remittances from government-owned and controlled corporations (GOCCs) in compliance with a directive to raise annual net earnings remittances to 75 percent from 50 percent.
National government expenditures reached P494.5 billion, up by 32.25 percent or P120.6 billion from a year earlier. The expansion was driven by higher releases of the national tax allotment (NTA) and subsidies to GOCCs and the release of funds for the Coconut Farmers Industry Trust Fund (CFITF).
Net of interest payments, the government recorded a P110.2-billion primary surplus in April, compared to the previous year’s P113.1 billion. This resulted in a four-month budget primary surplus of P30.6 billion, reversing the P15.9-billion primary deficit posted in the first four months of 2023.
Real GDP growth in the first quarter of 2024 was recorded at 5.7 percent, underscoring the country’s position as one of the fastest-growing economies in the region. The revenue and tax effort ratios for the quarter also improved.
With the GDP outturn, the first-quarter deficit to GDP ratio was at 4.46 percent, lower than 4.82 percent posted in the same period last year.
Meanwhile, the revenue and tax effort ratios in the three-month period improved to 15.28 percent and 13.43 percent from 14.58 percent and 12.95 percent in 2023, respectively.
Expenditure effort also increased to 19.74 percent from 19.40 percent in the first quarter of 2024.