Government posts ₱31.4 billion April surplus as revenue reaches ₱1.67 trillion in first four months

Four-month budget deficit narrows 14.44% even as spending grows faster than revenues; customs and non-tax income drive gains.

The National Government posted a budget surplus of ₱31.4 billion in April 2026, down 53.29% from the ₱67.3 billion recorded a year earlier, as spending growth outpaced revenue increases.

Revenues for the month reached ₱536.8 billion, up 2.83% from last year, while expenditures rose 11.14% to ₱505.4 billion.

Despite the weaker April outcome, the government’s fiscal position improved on a year-to-date basis. The budget deficit for the first four months narrowed by 14.44% to ₱324.1 billion from ₱378.7 billion in the same period in 2025.

Total revenues from January to April climbed to ₱1.67 trillion, up 9.99% from ₱1.52 trillion a year earlier.

The Bureau of the Treasury said tax revenues accounted for 88.52% of total collections, while non-tax revenues made up the remaining 11.48%. Tax collections rose 3.54% year-on-year to ₱1.48 trillion.

Non-tax revenues surged to ₱192 billion, more than double the ₱90.7 billion recorded in the same period last year, supported by early dividend remittances from government-owned and controlled corporations, privatization proceeds, and recovered funds from flood control projects.

By agency, the Bureau of Internal Revenue collected ₱422.2 billion in April, up 0.41% from a year earlier, as the extended deadline for filing annual income tax returns weighed on collections.

Strengthened valuation, continued digitalization

The Bureau of Customs posted ₱86.3 billion in April revenues, rising 15.52% year-on-year, supported by strengthened valuation and monitoring systems and continued digitalization of customs processes under its Integrity, Accountability, and Modernization program.

On the spending side, government disbursements for January to April rose 5.12% to ₱2 trillion.

April expenditures reached ₱505.4 billion, driven by higher National Tax Allotment shares of local government units, the Annual Block Grant to the Bangsamoro Autonomous Region in Muslim Mindanao, releases for the Local Government Support Fund, and increased budgetary support for government-owned and controlled corporations, including the return of ₱60 billion in excess funds to PhilHealth.

Disbursements were also boosted by direct payments from development partners for foreign-assisted railway projects under the Department of Transportation.

Interest payments for April climbed 36.77% to ₱63.5 billion due to deficit spending and the timing of coupon payments, though cumulative interest payments for the first four months rose at a slower pace of 17.12% to ₱336.7 billion.

Net of interest payments, the government recorded a primary surplus of ₱95 billion in April, down 16.51% from a year earlier. However, the year-to-date primary balance remained in surplus at ₱12.6 billion, reversing a ₱91.3 billion deficit in the same period in 2025.