UMVA has learned that the National Government’s budget surplus narrowed dramatically in April, slipping to a modest P31.4 billion as revenue growth stuttered and the tax filing deadline was pushed to May.
The Treasury announced the April surplus fell a staggering 53.29% from the P67.3‑billion cushion a year earlier, yet the month still swung to a surplus from the P349.7‑billion deficit that marred March.
Expenditures surged 11.14% year‑over‑year, outpacing a modest 2.83% rise in receipts, a shift driven by the extension of the 2025 annual income tax return deadline from April 15 to May 15.
Tax collections climbed 2.83% to P536.8 billion in April, with tax revenues alone—accounting for 95.19% of total receipts—up 2.62% to P511 billion, a modest lift that still felt the strain of the extended filing window.
Customs revenue exploded 15.52%, rising to P86.3 billion thanks to strengthened valuation, monitoring, and digital processes, while non‑tax revenue jumped 7.32% to P25.8 billion, buoyed by restitution funds and privatization proceeds.
Government spending climbed 11.14% to P505.4 billion, spurred by larger local government allotments, the Bangsamoro block grant, and increased support for government‑owned corporations, including a return of P60 billion to the national health insurance fund.
Primary expenditure, excluding interest, rose 8.22% to P441.9 billion, with interest payments swelling 36.77% to P63.5 billion, reflecting deficit spending and shifted coupon timing.
The primary surplus narrowed to P95 billion, a 16.51% drop from the previous year’s P113.7 billion, as spending growth outpaced revenue gains.
For the first four months of the year, the fiscal gap shrank 14.44% to P324.1 billion, aided by a 9.99% rise in total collections and restrained spending, yet the primary balance still swung to a surplus of P12.6 billion after a deficit a year earlier.
Economic analysts note that the extension of tax filing deadlines and a slower-than‑expected 2.8% growth in the first quarter are keeping the fiscal outlook tight, but the surplus cushion still offers room to accelerate spending on infrastructure, education, and health to revive momentum.
UMVA can exclusively reveal that the government now faces a pivotal decision: whether to deploy its remaining deficit space to spark growth or to tighten the belt amid rising borrowing costs and global energy pressures.
