The National Government (NG) recorded a budget surplus of P67.3 billion in April this year due to the slowdown in spending, data from the Bureau of the Treasury (BTr) showed.

In its latest cash operations report released on Tuesday, BTr said revenue collections slightly declined to P522.1 billion in April from P537.2 billion a year ago mainly due to the timing in non-tax collections.

The BTr said the temporary decline was offset by the 7.84 percent growth in tax revenues which reached P498 billion.

In particular, the Bureau of Internal Revenue’s (BIR) collection reached P420.5 billion, up 11.10 percent driven by higher corporate income tax (CIT), value-added tax (VAT), and personal income tax (PIT) collections.

"The surge in CIT collections was primarily due to the annual tax filing deadline for corporations in April. Meanwhile, PIT and VAT collections improved on the back of the BIR’s intensified efforts to simplify tax filing through enhanced digital services," the BTr said.

The increase in VAT collections was also supported by the BIR's crackdown on the use of fake receipts and its campaign against illicit trade.

The Bureau of Customs (BOC), on the other hand, collected P74.7 billion in April, down by 7.48 percent due to the fewer working days for the month and the impact of lower import volumes amid global trade challenges.

Non-tax revenues, meanwhile, amounted P24.1 billion, down by 68.08 percent year-on-year as most government-owned and controlled corporations have yet to remit dividends.

Spending

In April, the NG's expenditures went down by 8.03 percent to P454.8 billion from P494.5 billion last year due to lower interest payments, and subsidies to government corporations, particularly for the National Irrigation Administration.

The timing of transfer of the capitalization requirement of the Coconut Farmers and Industry Trust Fund also weighed down on the growth of April spending.

The BTr said that last year, the transfer was taken up in April while this year’s capitalization requirement was released in March.

Jan-April performance

For the first four months of the year, the budget balance stood recorded deficit of P411.5 billion, up by 78.98 percent, due to the
expansion in public spending to fuel economic activity and support priority programs of the Marcos administration.

Despite the decline in revenues in April, the BTr said the government is on track to hit its collection goals this year as year-to-date revenue collection amounted to P1.5 trillion, 3.35 percent higher than last year.

The higher collection was primarily driven by the 11.49 increase in tax revenues, which accounted for 94.03 percent of total collections.

Non-tax revenues made up the remaining 5.97 percent or P90.7 billion.

Spending, meanwhile, went up by 13.57 percent to P1.932 trillion.

BTR PHOTO