The National Government (NG) has demonstrated strong annual revenue collection of just under 14 percent, record-breaking efficiency and a pivot from “windfalls” to core tax sustainability in the past four years, according to Bureau of the Treasury (BTr) data.
These key elements were on display in the latest revenue collection numbers reported by the BTr in the first four months this year when NG reported a budget surplus just a tad under 10 percent to P1.67 trillion.
Based on BTr data, revenue collection expanded at an annual clip of 13.8 percent from 2022 to 2025, which outpaced historical averages and aligned closely with the Medium-Term Fiscal Framework (MTFF) crafted by policy planners.
Revenue effort, or collection as percentage of the gross domestic product (GDP) stood at 16.71 percent by the end of 2024, the highest revenue-to-GDP ratio achieved by NG in 27 years or since 1997 and helping position the Philippines favorably among emerging Asian neighbors.
More importantly, the nature of growth matured significantly during the period. For instance, there was a growth surge in 2024 when non-tax revenues totaled P618.3 billion driven by one-off Public-Private Partnership concession fees and fund balance transfers from state-owned Philhealth.
NG collected P3.546 trillion in 2022, P3.824 trillion in 2023, P4.419 trillion in 2024 and P4.453 trillion last year, based on BTr data.
While growth plateaued the following year when this slowed to only 0.78 percent as non-tax revenue fell by over 39 percent due to the absence of one-off windfalls. Nevertheless, core tax collection grew by 7.27 percent to P4.08 trillion on the back of Bureau of Internal Revenue and Bureau of Customs collection drives that demonstrate sustained tax administration rather than temporary financial maneuvers as basis for NG spending.
In the first four months this year, NG reported cumulative collection 10 percent higher to P1.67 trillion broken down as tax revenues totaling P1.48 trillion or 3.54 percent more than the year-ago of only P1.43 trillion. Non-tax revenue more than doubled to P192 billion from P90.7 billion, the BTr reported.
BIR collection surpassed last year’s numbers as four-month collection this year totaled P1.14 trillion from P1.11 trillion last year.
The BOC delivered 6.41 percent more for the period this year to P325.7 billion from only P306.1 billion.
Non-tax revenue over four months this year totaled P192 billion from year ago of only P90.7 billion on the back of asset sale proceeds, dividend remittances from government corporations and fund restitution recovered from the scandalous flood control projects of the recent past.
