The national government (NG) kicked off 2026 with a budget surplus of P165.4 billion in January 2026, more than double the P68.4 billion recorded in the same month last year on double-digit expensiture decline, data from the Bureau of the Treasury (BTr) showed.
The fiscal performance was led by steady revenue growth and a significant reduction in government spending compared to the previous year.
Total revenues for the month reached P468.9 billion, up 0.36 percent from P467.1 billion in January 2025.
Tax collections remained the primary engine of growth, accounting for 94.45 percent of the total.
Bureau of Internal Revenue (BIR) collections rose 1.01 percent to P358.7 billion, supported by digitalization and intensified tax administration.
Bureau of Customs (BOC) revenue grew 2.13 percent to P80.9 billion, bolstered by sustained enforcement against smuggling and strengthened compliance measures.
Income from other sources fell 12.08 percent to P26.0 billion, following a moderation in BTr income and lower shares from Malampaya proceeds.
Government expenditures dropped 23.9 percent to P303.5 billion from P398.8 billion a year ago.
The Treasury attributed the decline to the rescheduling of transfers to local government units (LGUs) and a high base effect.
Last year’s spending was notably higher due to the settlement of accounts payables and the frontloading of projects ahead of the election ban.
Primary expenditures—spending net of interest payments—fell 40.32 percent to P175.7 billion.
However, interest payments rose 22.39 percent to P127.8 billion due to additional debt servicing requirements and coupon payment timing.
Excluding interest payments, the NG recorded a primary surplus of P293.2 billion, a 69.67-percent jump from the P172.8 billion surplus posted in January 2025.
