By Justine Irish D. Tabile, Senior Journalist
NATIONAL GOVERNMENT (NG) the budget surplus is reduced in April it reached P31.4 billion amid muted revenue growth as a year-to-year filing deadlineThe tax returns are due in May, said the Bureau of the Treasury (BTr).
In a statement on Tuesday, the Ministry of Finance said the April surplus was 53.29% lower than last year. P67.3-billion surplus last year.
Month after month, the budget balance changed to more money from a deficit of P349.7 billion March.
“The attendance figure was supported by an 11.14% increase in annual expenditure year-on-year, which outpaced a modest 2.83% increase in government receipts as the 2025 income tax returns (AITR) deadline was extended from April 15 to May 15,” BTr said.
President Ferdinand R. Marcos, Jr. had extended the deadline by one month to give taxpayers more time to file their tax returns amid the declaration of a national power emergency.
BTr data showed total revenue collection increased by 2.83% to P536.8 billion in April from P522.1 billion in the same month last year.
Tax revenue, which made up the majority or 95.19% of total collections, increased by 2.62% to P511 billion in April from P498 billion in the same month in 2025.
The Bureau of Internal Revenue’s (BIR) collections increased by 0.41% to P422.2 billion in April from P420.5 billion last year, which was due to the extension of the deadline for filing and payment of AITRs.
The Bureau of Customs’ (BoC) revenue jumped 15.52% to P86.3 billion last month from P74.7 billion last year.
“BoC’s revenue performance is supported by the strengthening of its measurement and monitoring systems and the continued digitization of tax procedures, supported by its Integrity, Accountability, and Modernization Program,” said BTr.
Nontax income increased by 7.32% to P25.8 billion in April, as income from foreign countries.fice jumped 26.7% to P13 billion, offsetting a 7.02% drop in BTr’s revenue to P12.9 billion.
The BTr attributed the increase in non-taxable income to “P160 million in restoration funds received from flood control projects and P623.9 million in privatized funds.”
Meanwhile, NG consumption increased by 11.14% to P505.4 billion in April from P454.8 billion in the same month last year.
The Department of Finance said the increase is due to the increase in the National Tax Revenue (NTA) for local government units (LGUs) and the Annual Block Grant to the Bangsamoro Autonomous Region in Muslim Mindanao.
It also pointed to an increase in expenditure “due to the release of the Local Government Support Fund and an increase in government-managed budget funding and -controlled corporations (GOCCs).”
The Department of Finance said the budget support includes the return of P60 billion in excess funds to the Philippine Health Insurance Corp.
“Similarly, funds from direct payments made by development partners to suppliers or contractors for various foreign aided rail projects of the Ministry of Transport contributed to the higher income for April,” it added.
Principal expenses (the amount of interest payments) increased by 8.22% to P441.9 billion in April from P408.3 billion in the same month last year.
Interest payments rose 36.77% to P63.5 billion in April from P46.4 billion last year due to “deficits and changes in the timing of coupon payments.”
In April, NG recorded an underlying surplus of P95 billion, down 16.51% from P113.7-billion last year.
Marco Antonio C. Agonia, an economist at the University of Asia and the Pacific (UA&P), said the small budget surplus in April was largely made up. expenditure growth outpaces income.
“BTr data and releases show that LGU appropriations, NG subsidies, and interest payments are materially increasing every year. foundation,” he said BusinessWorld by email.
“On the revenue side, BIR tax growth slowed to a crawl after the April tax season was extended due to the ongoing energy crisis,” he added.
Chief China Economist Domini S. Velasquez said April’s fiscal performance partly reflects “existing factors such as the extension of the May tax filing deadline.”
“BoC stocks remain strong, likely benefiting from higher oil prices and a weaker peso,” he said in a Viber message.
The peso closed at P61.485 per dollar on April 30, weakening 73.7 cents from its close of P60.748 on March 31.
“For the time being, the cost growth was still mainly driven by interest payments, which reflects the careful payment activity,” said Ms. Velasquez. “Nevertheless, a little spending in April without interest payments would be good, especially if it is directed towards infrastructure, education and health.”
FOUR MONTH FAILURE
Data from the Treasury also showed the fiscal deficit decreased by 14.44% to P324.1 billions in the January to April period from a deficit of P378.7 billion last year, amid a nearly 10% growth in total collections and muted spending.
This represents 20.1% of the P1.61-trillion plan approved by the Development Budget Coordinating Committee (DBCC) in its 192.n.d meeting in December.
In the four-month period, total revenue collection increased by 9.99% to P1.67 trillion from P1.52 trillion recorded in the same period last year. This made 34.66%. P4.82-trillion plan for the year.
As of the end of April, tax revenue increased by 3.54% to P1.48 trillion, as BIR collections increased by 2.74% to P1.14 trillion and tax collections increased by 6.41% to P325.7 billion.
Nontax revenue increased 111.59% to P192 billion as of the end of April, while BTr revenue jumped 209.34% to P142.8 billion and morefice revenue increased by 10.25% to P49.1 billion.
The Ministry of Finance said the nontax income was increased by “the issuance of initial dividends from other GOCCs.”
In the four-month period, spending increased 5.12% to P1.996 trillion from P1.89 trillion last year. This was already 31% of the P6.43-trillion payment plan approved at the DBCC meeting in December.
The primary budget balance shifted to a surplus of P12.6 billion in the first four months from an initial deficit of P91.3 billion last year.
“The deficit reduced the use of NG infrastructure in the beginning quarter of 2026, and basis results since last year’s election season. But as we have seen in the reading of the first quarter, spending too little is detrimental to economic growth,” said Mr. Agonia.
“At the moment, we see economic storms from the war in the Middle East, especially with a high level of borrowing, to close the gap from last year’s losses in the coming months. The recovery of NG infrastructure costs in the second half of the year may also encourage significant financial losses,” he added.
Government officials previously said they expected a review of spending amid plans for agencies to take action after the economy grew by a slower-than-expected 2.8% in the first quarter. This was below the government’s target of 5-6% per annum.
However, Mr. Agonia said “the latest budget gives the NG a breathing space to start spending, especially with the P1.3-trillion planned. what is left is until the end of the year.”
“The ball is now in NG’s court to consolidate public spending to rebuild economic momentum and address the current energy crisis,” he added.
Ms. Velasquez said the January to April performance shows that the government has room to accelerate spending while staying within fiscal targets.
“The rapid launch of key programs and infrastructure projects could help support strong economic growth in the second half of the year, although additional sources of non-tax revenue may be needed to keep the deficit within the target,” he added.
