The government is on track to hit fiscal targets this year as revenue collections and expenditures continued to post double-digit growth as of end-February, the Bureau of the Treasury (BTr) said.
In its cash operations report released Wednesday, the BTr said the government recorded a budget deficit of PHP103 billion in the first two months of the year, wider than the PHP76.7 billion seen last year.
Revenue collections for the first two months of the year rose by 11.32 percent to PHP718.9 billion from PHP645.8 billion in the same period last year.
Taxes accounted for the largest component at PHP671.9 billion, up by 12.64 percent.
BTr data showed that the Bureau of Internal Revenue (BIR) collected a total of PHP514.7 billion in the first two months of the year, higher by 15.31 percent than the PHP446.4 billion collection in 2024.
The growth was driven by increases in value-added tax collections, corporate income tax, personal income tax, final withholding tax on government securities, and documentary stamp tax.
“The BIR’s continued progress in revenue performance is credited to its ongoing improvements in tax payment systems and collection efficiency,” said the BTr.
The Bureau of Customs (BOC) on the other hand, collected PHP151 billion, surpassing the PHP144 billion recorded in January to February last year.
“The YoY (year-on-year) growth in BOC collections for the first two months mirrored the 4.93 percent growth in goods imports for the same period. BOCs’ continuous modernization, border protection, and capacity development efforts have enabled the bureau to maintain its positive performance in the first two months of the year,” said the BTr.
Non-tax revenues, however, went down to PHP47 billion from PHP49.3 billion in 2024 partly due to lower receipts from Malampaya proceeds.
Expenditures
Government expenditures meanwhile, amounted to PHP822 billion, higher by 13.76 percent than the PHP722.5 billion seen in January to February last year.
The BTr noted that in February alone, disbursements increased by over 8 percent to PHP423.2 billion due to higher capital expenditures of the Department of Public Works and Highways, particularly from progress billings and payment of right-of-way acquisition for its various infrastructure projects.
Higher disbursements recorded in the Department of Health and the Department of Social Welfare and Development for their banner health and protective services programs also contributed to the growth of February disbursements.
The BTr said primary expenditures amounted to PHP669.1 billion, up by 11.43 percent from last year’s PHP600.5 billion.
Interest payments meanwhile, also rose by 25.26 percent to PHP152.9 billion. (PNA)
