The government’s budget surplus shrank to ₱68.4 billion in January, a decrease from the ₱88 billion surplus recorded in the same month last year, as government spending grew at a faster rate than revenues, Bureau of the Treasury (BTr) data showed.
Revenue collection saw a 10.7% year-on-year increase, reaching ₱476.1 billion, primarily driven by a 13.6% rise in tax revenues, which amounted to ₱437.5 billion. Non-tax collections totaled ₱29.6 billion.
However, government expenditures surged by 19.45% to ₱398.8 billion in January. The BTr attributed this increase to higher disbursements for infrastructure projects, health and social protection programs, preparations for the 2025 elections, increased National Tax Allotment releases, subsidies to government corporations, and higher interest payments due to shifts in bond issuance strategy.
The government has set a budget deficit target of ₱1.39 trillion, equivalent to 5.6% of the country’s gross domestic product, for 2024, aiming to reduce the fiscal gap while maintaining economic growth.
