Philippines Budget Surplus Narrows in April

The Philippines’ budget surplus narrowed to PHP 31.4 billion in April 2026 from PHP 67.3 billion in the same month a year earlier. Total expenditures jumped 11.14% to PHP 505.4 billion, driven by higher National Tax Allotment shares for LGUs, as well as the Annual Block Grant for the BARMM and the Local Government Support Fund. Spending was also supported by increased budgetary assistance to GOCCs and the return of PHP 60.0 billion in excess funds from PhilHealth. Meanwhile, total revenues rose 2.83% year-on-year to PHP 536.8 billion, driven by a 2.62% increase in tax collections and a 7.32% rise in non-tax revenues. For the January–April period, the budget deficit narrowed to PHP 324.1 billion, down 14.44% from PHP 378.7 billion in the same period last year.

The Philippines’ budget deficit widened to PHP 349.7 billion in March 2026 from PHP 342.9 billion in the corresponding month of the previous year. This marked the largest deficit since a record high in December 2023. Total revenues rose 9.25% year-on-year to PHP 305.1 billion, driven by a 6.51% increase in tax collections and a 45.54% surge in non-tax revenues. Total expenditures increased 5.23% to PHP 654.8 billion, led by higher National Tax Allotment shares of LGUs, as well as releases for their Special Shares in the Proceeds of National Taxes – Tobacco Excise tax and the Local Government Support Fund. Spending was also buoyed by higher budgetary assistance to GOCCs and PHP 20.0 billion in releases to the DOE for the government’s Emergency Energy Program, aimed at boosting fuel supply amid Middle East tensions. For the first quarter of the year, the country recorded a budget shortfall of PHP 355.5 billion, narrowing from PHP 446.0 billion in the same period last year.

The Philippines posted a budget deficit of PHP 171.2 billion in February 2026, slightly narrowing from the PHP 171.4 billion shortfall recorded in the same month a year ago. Total revenues surged 43.52% year-on-year to PHP 361.3 billion, driven by a sharp increase in non-tax revenues, reflecting the earlier-than-usual remittance of 2025-earned dividends. Total expenditures climbed 25.83% to PHP 532.5 billion, largely due to the spillover of January’s National Tax Allotment (NTA) and Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) block grant releases into early February, as well as releases for the Special Shares of LGUs in the Proceeds of National Taxes – Tobacco Excise Tax. For the January–February period, the budget deficit shrank to PHP 5.8 billion, a significant decline of 94.35% from PHP 103.1 billion in the corresponding period last year.