State revenues hit P1.4 trillion in April

MANILA, Philippines — The country generated P1.4 trillion in revenues from January to April as the government ramped up its revenue mobilization efforts, Finance Secretary Ralph Recto said.

The preliminary data as of end-April was higher than the P1.3 trillion revenue collections recorded by the Bureau of Treasury (BTr) in the same period in 2023.

“My calculation is that we are at P1.4 trillion already,” Recto said. “We’re kind of on track to hit the target, but it’s still for the first four months. Let’s see if it’s sustainable for the next eight months.”

According to the finance chief, the Bureau of Internal Revenue collected P912.9 billion as of end-April while the Bureau of Customs earned P295.2 billion in the same period.

Non-tax revenues also hit P206.4 billion from January to April, Recto said.

“We expect both our tax and non-tax revenues to dramatically increase over the coming months as we intensify our revenue mobilization efforts,” he said.

Government revenues are crucial in calculating the state’s budget balance. It refers to all receipts that the Philippines generate, which include taxes, custom duties, revenue from state-owned firms, capital revenues and foreign aid.

Recto, however, said the government is expected to remain at a budget deficit.

“We will always have a deficit. Our debt will increase this year. There’s no doubt about that,” he said. “But the idea is to grow the economy at a faster rate than our debt.  So if we grow by six percent, then that’s faster than our debt. The debt can definitely be paid.”

The country’s budget shortfall slightly increased by 0.65 percent to P272.6 billion in the first quarter compared to last year’s P270.9 billion.

This developed even as the budget gap in March narrowed by seven percent to P195.9 billion.

The deficit in the first quarter still means that the government spent beyond what it generated from revenues, although at minimal percentage this time.

Recto also said they are not planning to raise the revenue target this year.

The government is targeting to collect P4.3 trillion in revenues this year and P4.6 trillion by 2025. The deficit ceiling is set at 5.6 percent of gross domestic product, or P1.48 trillion in 2024.