Government reports January surplus of 45.7 billion pesos

The National Government (NG) posted a budget surplus of 45.7 billion pesos in January, the Bureau of the Treasury said Friday, compared to a deficit of 23.4 billion pesos a year earlier.

This was due to the fact that revenues exceeded government spending, Finance Minister Benjamin Diokno told reporters.

Data for this period showed revenue growth of 25.21%, well ahead of government spending growth of 0.32%.

The Ministry of Finance said in a statement that the government raised 348.2 billion pesos in January, up from 278.1 billion pesos last year.

Taxes were 87.73 percent or 305.4 billion pesos, up 19.48 percent year on year, while non-tax revenues were 12.27 percent of 42.7 billion pesos, up 90.37 percent.

The tax administration’s collections rose 19.94% to 234.8 billion pesos, while the customs administration collected 70.6 billion pesos, up 20.99% year on year.

Meanwhile, the Treasury generated 17.8 billion pesos, up 59.69% from January last year.

Other office fees (non-tax revenues including privatization proceeds, fees and charges) accounted for 58.46 percent of the non-tax component and increased to 25.0 billion pesos in January 2023, more than double the amount recorded in the previous year.

Spending in January was 302.4 billion pesos, slightly higher than a year earlier at 301.5 billion pesos, mainly due to spending by the defense and transport ministries. Social protection programs and education subsidies have contributed.

In January, primary spending accounted for 84 per cent of total disbursements, totaling 255.4 billion pesos.

Interest payments of 47.0 billion pesos fell by 28.35% year on year.

NG’s primary surplus for January 2023 was 92.7 billion pesos, up from 42.2 billion pesos the previous year.