Philippines reports smaller budget surplus in January 2025

The Philippine government recorded a fiscal surplus in January 2025, but it was smaller than in the same month last year. The surplus reached P68.4 billion, a significant improvement from a deficit of P329.5 billion in December 2024. This data comes from the Bureau of the Treasury's cash operations report. Overall, the government collected P467.1 billion in revenue during January, marking a growth of 10.75 percent compared to the previous year. Taxes made up most of these revenues, totaling P437.5 billion, which saw a 13.60 percent increase. The Bureau of Internal Revenue reported a revenue of P355.1 billion, thanks to stronger collections from value-added tax and income taxes. On the other hand, non-tax revenues fell by 19.16 percent to P29.6 billion. This decline was influenced by previous one-time gains. Meanwhile, government expenditures increased by 19.45 percent to P398.8 billion. The rise in spending was largely due to payments for past infrastructure projects and health programs, as well as costs related to the upcoming midterm elections in May. Looking ahead, the Marcos administration aims for an "A" credit rating and has set a fiscal deficit limit of P1.537 trillion, which is around 5.3 percent of the country's gross domestic product. To manage this fiscal gap, the government plans to borrow P2.55 trillion from various sources.