MANILA – The Philippine government surpassed its revenue target for 2024, collecting PHP4.419 trillion, exceeding the PHP4.27 trillion goal, according to the Bureau of the Treasury (BTr). This performance marked the highest revenue effort since 1997, representing 16.72% of the country's Gross Domestic Product (GDP).

The BTr attributed the success to robust non-tax revenue growth, which surged by 56.61% to PHP618.3 billion, significantly surpassing the revised target of PHP449.6 billion. Key contributors included windfall collections from Public-Private Partnership (PPP) concession fees and fund transfers from the Philippine Health Insurance Corporation (PHIC) and the Philippine Deposit Insurance Corporation (PDIC).

Tax collections also saw positive growth. The Bureau of Internal Revenue (BIR) collected PHP2.85 trillion, a 13.29% increase from 2023, driven by higher Value-Added Tax (VAT) collections. The Bureau of Customs (BOC) collected PHP916.7 billion, a 3.79% rise, though slightly below its revised target due to reduced tariffs on rice, electric vehicles, and meat products.

On the expenditure side, disbursements reached PHP5.925 trillion, an 11.04% increase from 2023, exceeding the revised target of PHP5.75 trillion. This growth was fueled by infrastructure projects, health and social protection programs, and salary adjustments for government employees. Additional spending from Unprogrammed Appropriations, including pandemic-related benefits and financial assistance programs, also contributed to the increased disbursements.

Despite the rise in expenditures, the budget deficit narrowed by 0.38% to PHP1.506 trillion, as revenue growth outpaced spending. As a percentage of GDP, the deficit improved to 5.70% in 2024 from 6.22% in 2023, reflecting the government's improved fiscal management.