Philippine Government Achieves Fiscal Surplus in January 2024

Robust Revenue Growth Leads to Fiscal Strength

The Philippine government started 2024 on a high note, registering a significant fiscal surplus in January. The Bureau of the Treasury (BTr) reported an impressive surplus of P88 billion, a 92.25% increase from the P45.7 billion surplus recorded in January 2023. This financial upturn was primarily due to a 21.15% year-over-year rise in revenue collection, which outpaced a 10.39% increase in government spending.

Tax Collections Drive Revenue Increase

The surge in government revenues, totaling P421.8 billion for the month, was predominantly driven by heightened tax collections, contributing 91.31% (P385.2 billion) to the total revenue. The Bureau of Internal Revenue (BIR) played a significant role, amassing P308.4 billion, up by 31.35% from the previous year, influenced by changes in value-added tax (VAT) remittance schedules.

Customs and Non-Tax Revenues

The Bureau of Customs also reported growth, collecting P73.4 billion, a 3.98% increase from the year prior, attributed to improved customs valuation and enhanced trade facilitation. Non-tax revenues, however, experienced a slight decline, with the BTr and other offices contributing P36.6 billion to the total revenue.

Expenditure and Interest Payments

Government expenditure for January 2024 reached P333.9 billion, marking a 10.39% rise from the previous year. Notably, interest payments saw a significant jump of 58.02%, amounting to P74.2 billion, impacted by bond reissuance and global bond activities.

Looking Ahead

The strong fiscal performance in January underscores the Philippine government’s robust financial management and economic fundamentals. With the BTr’s effective revenue generation and strategic financial planning, the country is poised for continued fiscal health and economic growth.