Metro Manila (CNN Philippines) — After three consecutive months in the red, the national government’s budget swung to a surplus of P52.6 billion last April, according to figures from the Department of Finance (DOF). The agency said that revenue collections outpaced government spending during that month.
The funds are markedly lower than the P80.9 billion-surplus collected during the same month last year. The government blames the drop on the timing of dividends from government owned and controlled corporations (GOCCs), lower customs and investments income, and faster government spending.
However, the surplus was large enough to offset P33.5 billion of deficits incurred from January to March. April’s figure subsequently brings January-April’s budget to a surplus of P19.1 billion. This marks the first time in four years for the administration to record a surplus during the first four months of the year.
The government managed to raise P209.1 billion in April — 7% lower compared to April 2014. Nevertheless, total revenue collections (P679.6 billion) for the first four months of the year remained positive, with a 9% growth from the same period last year.
The Bureau of Internal Revenue was the government’s largest source of funds, accounting for P160.8 billion of April’s total revenue. That figure brings the January to April tally to P467.9 billion — 11% higher than the same period in 2014.
The Bureau of Customs stood at second with P28.1 billion in revenue — that’s about 9% lower than the P35.72 billion raised in March. Nevertheless, the agency’s January-April revenue is still up 3% from the same period last year.
About P11.6 billion were generated by the Bureau of the Treasury — 62% lower compared to the same month last year. The DOF attributes the contraction to dividend collections from GOCCs remitted the previous month, and an decline in investment income by 49%.
Looking ahead, the DOF sees legislative reform as a key contributor to the country’s finances. “Both houses of Congress have recently advanced priority economic bills, namely the Tax Incentives Management and Transparency Act, Fair Competition Act, and the easing of the Cabotage law, ensuring that we continue to grow with better policy environments,” the agency said in a statement.
“We are confident that the continued expansion of our fiscal space can support the growing spending needs of a booming economy… we want to spend on [the] right project, with the right quality, with the right people, at the right time, at the right cost, and at the right pace.”
