The budget posted a surplus of P31.4 billion in April, helping narrow the fiscal shortfall for the year until April despite higher government spending during the month, according to the Bureau of the Treasury (BTr).

In its latest cash operations report, the BTr said the April surplus was 53.29 percent lower than the P67.3-billion surplus recorded a year earlier as expenditure growth outpaced revenue collections. 

Still, the January-to-April fiscal deficit narrowed by 14.44 percent to P324.1 billion from P378.7 billion in the same period last year.

The latest figures point to an improving fiscal position compared with the same period last year, supported by stronger customs and non-tax collections. 

However, the smaller surplus relative to April 2025 also reflected rising spending obligations, including larger transfers to local governments and increased support for state-run corporations.

Collections higher

Government revenues in April rose 2.83 percent to P536.8 billion from P522.1 billion a year earlier, while cumulative collections for the first four months increased 9.99 percent to P1.67 trillion. Tax revenues accounted for the bulk of collections at P1.48 trillion as of end-April, up 3.54 percent year-on-year.

The Bureau of Internal Revenue (BIR) collected P422.2 billion in April, slightly higher than the P420.5 billion recorded a year earlier. 

The Treasury said slower BIR growth was partly due to the extension of the filing and payment deadline for annual income tax returns from 15 April to 15 May following the declaration of a State of National Energy Emergency.

Meanwhile, collections by the Bureau of Customs (BoC) rose 15.52 percent to P86.3 billion in April from P74.7 billion a year earlier. The BoC attributed the increase to strengthened valuation and monitoring systems, as well as continued digitalization of customs processes under its Integrity, Accountability and Modernization Program.

Non-tax revenues likewise increased by 7.32 percent to P25.8 billion, supported by restitution funds recovered from flood-control projects and privatization proceeds.

Government expenditures climbed 11.14 percent to P505.4 billion in April from P454.8 billion a year earlier.

The increase was driven by higher National Tax Allotment shares for local government units, the annual block grant to the Bangsamoro Autonomous Region in Muslim Mindanao, releases under the Local Government Support Fund, and budgetary support for government-owned and controlled corporations, particularly the return of P60 billion in excess funds to PhilHealth.

Disbursements related to the Department of Transportation’s foreign-assisted railway projects also contributed to higher spending during the month.

Interest payments rose 36.77 percent to P63.5 billion, driven by deficit financing requirements and shifts in coupon payment timing.

Net of interest payments, the government recorded a primary surplus of P95 billion in April, although this was lower than the P113.7-billion primary surplus posted a year earlier.

A budget surplus occurs when government revenues exceed expenditures during a given period. The P31.4-billion surplus recorded in April indicates that the government collected more than it spent during the month, easing fiscal pressures and narrowing the year-to-date deficit.