The national government (NG) on Wednesday reported posting a P11.2-billion budget surplus in October, marking a 76 percent increase from the same month last year. This improvement helped narrow the fiscal deficit to P1.11 trillion for the first ten months of the year, keeping the government on track with its full-year consolidation goals.
Revenues rose to P3.81 trillion as of October, an increase of 1.13 percent from the previous year. The growth was driven largely by tax collections, which climbed 7.45 percent to P3.47 trillion. The BIR contributed P2.65 trillion, supported by stronger collections from corporate and personal income taxes, VAT, bank taxes, and tobacco excise. The BOC generated P784.6 billion, slightly above last year’s level as import values increased, though the rice import ban limited gains by reducing rice-related duties.
Non-tax revenues fell 36.7 percent because last year’s extraordinary receipts were absent. Despite the decline, these still surpassed the full-year target due to solid Treasury income and earnings from privatization, fees, and grants.
From January to October, government spending reached P4.91 trillion, reflecting a 3.9 percent rise from last year. Primary spending saw only modest growth as infrastructure expenditures slowed during a review of DPWH flood control projects. Interest payments, meanwhile, increased 13.24 percent to P723.2 billion.
The primary deficit expanded to P382.9 billion, up 17.7 percent, as the government continued to fund priority programs aimed at supporting inclusive growth.
Taken together, the data depict a government maintaining fiscal discipline through strong tax performance and controlled spending, even as it continues to invest in key development initiatives.
