Q1 Budget Deficit Narrows to ?355B on Strong Revenue Growth

Business | Economics Posted on 2026-04-24 00:28:55

MANILA – The national government’s budget deficit shrank to ₱355.5 billion in the first quarter of 2026, significantly lower than the ₱446 billion recorded in the same period last year, according to the Bureau of the Treasury (BTr).

The improvement was fueled by robust revenue performance, with total collections rising 13.74 percent to ₱1.14 trillion from ₱998.2 billion a year earlier. Both tax and non-tax revenues contributed to the increase.

Tax revenues reached ₱969.2 billion, while non-tax revenues surged to ₱166.1 billion—more than double last year’s ₱66.6 billion—largely due to earlier dividend remittances from state-owned firms.

The Bureau of Internal Revenue (BIR) generated ₱719.2 billion, posting over 4 percent growth, supported by enhanced tax administration, digital initiatives, and efforts to curb leakages.

Meanwhile, the Bureau of Customs (BOC) collected ₱239.4 billion, slightly higher than the ₱231.4 billion recorded in the same period last year.

Government spending also rose, with total disbursements increasing 3.22 percent to ₱1.49 trillion from ₱1.44 trillion. In March alone, expenditures climbed 5.2 percent to ₱654.8 billion, driven by higher allocations to local government units, including their shares in national taxes and tobacco excise revenues, as well as funding from the Local Government Support Fund.

Additional spending was directed toward government-owned and controlled corporations, along with a ₱20 billion allocation to the Department of Energy to support its Emergency Energy Security Program amid ongoing geopolitical tensions in the Middle East.

NPO News Team | PNA - PR

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