P4.4-T revenues best in 27 years

The government collected total revenues for last year, 15.6 percent higher than a year ago to P4.419 trillion, exceeding the target of P4.27 trillion.

The Bureau of the Treasury (BTr) on Thursday reported the latest revenues contributed 16.72 percent to the country’s gross domestic product (GDP), making it the highest in the past 27 years.

Thus, the BTr said the country’s budget deficit declined to P1.5 trillion by 0.38 percent, leading to a smaller share in the GDP at 5.7 percent from 6.22 percent in 2023.

“The slight variance versus the P1.484 trillion deficit program was primarily due to a higher outturn in government spending, including those charged to unprogrammed appropriation, as well as defrayment of accounts payables,” BTr said in its report.

BTr said the P618.3-billion non-tax revenues pushed up the total revenues as it surpassed the government’s target of 37.5 percent for last year and by 57 percent compared to the level in 2023.

P3.8-T taxes collected

Meanwhile, tax revenues reached P3.801 trillion, falling slightly below the target by 0.51 percent.

However, tax revenues surpassed the 2023 level by 10.83 percent.

The Bureau of Internal Revenue collected P2.852 trillion, up by 13 percent from P2.5 trillion due to a higher volume value-added tax. The new collection exceeded the government’s target by 0.09 percent.

BTr added the higher salaries of government workers increased the collection of personal income tax.

Meanwhile, the Bureau of Customs contributed P916.7 billion, rising by 4 percent compared to the figure posted two years ago.

However, this was 2.5 percent lower than the government’s target for last year due to reduced tariffs on rice, meats, and selected electric vehicles under Executive Order 50.

Non-tax revenues partly increased due to the P30 billion in concession fees under the Public-Private Partnership and the P167.2 billion fund transfers from the Philippine Health Insurance Corp. and the Philippine Deposit Insurance Corporation.

Excluding those fund transfers, BTr said non-tax revenues stood at P451.1 billion or higher by 0.33 percent, leading to the total non-tax revenues of P618.3 billion.

Meanwhile, the BTr registered a 24 percent growth in income at P283.4 billion. Income sources included interest advances from government-owned and controlled corporations, profit share from the Philippine Amusement and Gaming Corporation, and dividend remittances from the Bangko Sentral ng Pilipinas.

Privatization of government assets, grants and other fees doubled to P335.0 billion and surpassed the government’s target for last year by 28 percent.

On expenditures, the government raised disbursements by 11 percent to P5.9 trillion year-on-year. This was also slightly higher than the government’s target of P5.754 trillion.