Government records fiscal surplus in April, boosted by tax filing month
The government of the Philippines saw a fiscal surplus in April, driven by the seasonal increase in revenues during the income tax filing month. However, the surplus was smaller compared to the previous year due to faster spending.
Data from the Bureau of the Treasury revealed a budget surplus of P42.7 billion in April. Despite this, the surplus was 36.03 percent lower year-on-year. The four-month deficit tally stood at P229.9 billion, showing a 12.66 percent increase.
April typically sees a surplus as individuals and businesses file their annual income tax returns, leading to a boost in revenues. State receipts in April reached P537.2 billion, up by 21.9 percent. Year-to-date revenues totaled P1.5 trillion, marking a 16.8 percent increase.
The Bureau of Internal Revenue (BIR), responsible for 80 percent of state revenues, recorded a 12.65 percent increase in collections to P378.5 billion in April. The Bureau of Customs collected P80.7 billion from import duties and other fees, a 19.52 percent increase.
Government spending in April amounted to P494.5 billion, rising by 32.25 percent primarily due to subsidies released to state-run corporations for their projects. Year-to-date disbursements reached P1.7 trillion, a 16.22 percent increase from the previous year.
Economist Robert Dan Roces from Security Bank noted that the spending increase in April is positive for economic growth. He expects government spending to rise in the second quarter and beyond, stimulating economic activity and job creation. The pace and magnitude of spending will depend on government priorities and fiscal capacity.
