The national government’s (NG) budget surplus for January 2025 decreased by 22.27% year-over-year (YoY) to Php 68.4 billion, reflecting a combination of sustained revenue growth and rising expenditures, according to the Bureau of the Treasury (BTr).
Revenue collections continued their robust performance, growing by a double-digit 10.75% YoY, reaching Php 467.1 billion in January 2025, up from Php 421.8 billion in the same period last year. This increase was primarily driven by a 13.60% YoY rise in tax revenues, which accounted for the lion’s share of the total collections.
Taxes made up 93.66% of the total collections, amounting to Php 437.5 billion, while non-tax revenues contributed the remaining 6.34%, or Php 29.6 billion.
The Bureau of Internal Revenue (BIR) reported a strong start to the year, collecting Php 355.1 billion in January, a 15.13% (Php 46.7 billion) increase from the previous year’s Php 308.4 billion. The growth was driven by a significant 18.62% (Php 21.4 billion) rise in Value-Added Tax (VAT), followed by a 14.23% (Php 18.1 billion) increase in income taxes.
Other taxes grew by 22.20% (Php 3.7 billion), and percentage taxes rose by 11.88% (Php 3.4 billion). This performance was bolstered by the BIR’s enhanced collection efforts, a crackdown on illicit trade, and ongoing digital transformation initiatives.
The Bureau of Customs (BOC) also posted strong results, collecting Php 79.3 billion in January, an increase of 7.98% (Php 5.9 billion) compared to Php 73.4 billion in January 2024. The BOC’s modernization efforts were key to this performance. VAT collections surged by 17.55% (Php 7.7 billion), while excise tax collections grew by 10.10% (Php 1.8 billion). These gains helped offset a decline in duty collections, which were impacted by the reduced tariffs on rice imports under Executive Order No. 62.
On the non-tax revenue side, total non-tax collections amounted to Php 29.6 billion, marking a 19.16% decrease from the previous year. This decline was largely due to the base effect of one-time gains recorded in January 2024.
However, income from the BTr remained relatively steady, despite a 5.92% decline. The BTr’s income contributed 53.17% (Php 15.7 billion) of total non-tax revenues, with a notable 34.62% YoY increase in the government’s share of PAGCOR profits providing a positive contribution.
The BTr noted that while the national government’s budget surplus showed a decline in January 2025, strong revenue performance, particularly from tax collections, underscores the government’s continued fiscal resilience. However, increased expenditures continue to exert pressure on the overall surplus.
