The National Government opened 2026 with a fiscal jolt, posting a P165.4-billion budget surplus in January—more than double the P68.4 billion recorded a year earlier—as steady revenues met sharply lower spending.
Data from the Bureau of the Treasury showed revenues inching up 0.36 percent to P468.9 billion, with taxes continuing to do the heavy lifting. Tax collections reached P442.8 billion, up 1.21 percent year-on-year and accounting for over 94 percent of total revenues.
The Bureau of Internal Revenue led the charge, raising P358.7 billion, supported by ongoing digitalization and tighter tax administration. The Bureau of Customs followed with P80.9 billion, boosted by enforcement efforts against smuggling and improved compliance.
Non-tax revenues, however, told a softer story, falling 12 percent to P26.0 billion amid lower income from the Treasury and reduced government share from Malampaya proceeds.
But the real swing factor was spending—or the lack of it.
Government expenditures plunged 24 percent to P303.5 billion from P398.8 billion last year. The drop was largely attributed to the rescheduling of transfers to local government units and a high base in 2025, when agencies frontloaded spending ahead of the election ban and settled payables early.
Primary spending, excluding interest payments, fell a steep 40 percent to P175.7 billion, underscoring a significant slowdown in disbursement pace. In contrast, interest payments climbed 22 percent to P127.8 billion, reflecting a heavier debt burden and shifting payment schedules.
Strip out interest costs, and the fiscal picture looks even stronger: the primary surplus surged nearly 70 percent to P293.2 billion.
The January surplus was less about a revenue boom and more about timing. With spending delayed rather than slashed, the early surplus may prove temporary—setting the stage for heavier outlays in the months ahead as government agencies catch up.
