Revenues reached P4.1 trillion as of November, which the Bureau of the Treasury (BTr) on Thursday said has raised the government’s confidence that it will exceed a target of P4.3 trillion for the entire year.

BTr reported government revenues in the first 11 months accounted for 96.12 percent of the full-year target and surpassed the year-ago level by 15.16 percent or P540.3 billion.

Tax collection grew by 11.51 percent to P3.5 trillion, while non-tax revenues surged by 45.6 percent to P555.3 billion.

The Bureau of Internal Revenue (BIR) collected taxes amounting to P2.7 trillion out of the P2.8 trillion programmed for the full year.

The latest level was 13.88 percent higher compared to the level recorded from January to November 2023.

“The year-on-year positive growth in the BIR collections for November 2024 can be attributed to the double-digit rise in collections from income taxes, value-added tax (VAT), excise taxes and documentary stamp tax,” BTr said.

Meanwhile, the Bureau of Customs increased its collection by 4.68 percent to P850 billion out of the programmed P939.7 billion for the full year.

“The positive year-to-date growth can be primarily attributed to the higher year-on-year collections from import duties, VAT and excise taxes as a result of a higher value of non-oil imports (net of rice), PHP/USD exchange rate, and value and volume of petroleum oil imports, among others,” BTr said.

For the non-tax revenues, BTr grew its revenue by 7.57 percent to P249.1 billion which already surpassed its full-year target of P187 billion.

BTr attributed the growth to higher interest in advances from government-owned and controlled corporations, guarantee fees and the national government’s share from the income of the Philippine Amusement and Gaming Corporation.

Meanwhile, non-tax revenues from other offices, which received proceeds from the privatization of government assets and grants, surged by 95.46 percent to P322.6 billion compared to last year and surpassed their full-year program of P262.6 billion.

Manageable budget deficit

With the growth in tax and non-tax revenues, BTr said the government maintained a “manageable” budget deficit as of November at P1.2 trillion out of P1.5 trillion programmed for the full year, despite increased government spending.

In November alone, government expenditure jumped by 27.13 percent to P551.3 billion compared to the year-ago level.

As a result, government spending hit P5.3 trillion in the first 11 months, higher by 12.96 percent compared to last year. The government aims to mobilize P5.8 trillion for the full year.

Primary expenditures, which exclude interest payments for loans, increased by 25.85 percent to P484.6 billion in November.

Interest payments surged by 37.29 percent to P66.7 billion mainly due to new issuances of domestic bonds, global bonds, and Bonds, and foreign exchange fluctuations.

The International Monetary Fund expects the Philippines (IMF) to reduce its fiscal deficit from 6.1 percent last year to 5.6 percent this year due to government reforms on investments and taxes and more strategic spending on critical projects, including upskilling and security of basic needs for human resources.

“We see there will be a declining debt-to-GDP (gross domestic product) ratio so we should have more resources to invest in social services,” IMF Resident Representative for the Philippines Ragnar Gudmundsson said.