2 weeks ago
7
The government’s total revenue collections for 2024 reached ₱4.419 trillion, surpassing the ₱4.270 trillion target and marking the highest revenue effort in 27 years at nearly 17 percent of the gross domestic product (GDP).
The budget deficit narrowed slightly by ₱5.7 billion to ₱1.506 trillion as revenue growth outpaced spending. As a percentage of GDP, the deficit improved to 5.70 percent in 2024 from 6.22 percent in 2023.
Total revenue collections reached ₱4.419 trillion in 2024, up 15.56 percent from the previous year and exceeding the revised target by 3.49 percent. According to the Bureau of the Treasury, this was driven by “better-than-expected non-tax revenue collections.”
Tax revenues comprised 86 percent of total collections at ₱3.801 trillion, rising 10.83 percent from last year but missing the revised target by 0.51 percent.
Non-tax revenues, accounting for 13.99 percent at ₱618.3 billion, surged 56.61 percent year-on-year and surpassed the adjusted target by 37.53 percent.
The Bureau of Internal Revenue (BIR) collected ₱2.852 trillion last year, a 13.29 percent increase from the previous year, exceeding its adjusted target by ₱2.7 billion. The rise was driven by higher value-added tax (VAT) collections, as 12 months' worth of VAT was collected in 2024 compared to 10 months in 2023 due to a filing schedule change.
Personal income tax collections also increased, boosted by higher withholding taxes on wages and at source. This was mainly due to government salary hikes under Executive Order No. 64, s. 2024, and improving labor market conditions.
Higher corporate income tax, bank deposit tax, and documentary stamp tax also boosted BIR collections, which rose 5.48 percent year-on-year to P183.8 billion in December.
Meanwhile, the Bureau of Customs (BOC) collected ₱916.7 billion in 2024, up four percent year-on-year after tax refunds.
“The increase is attributable to the growth across duties, VAT, and excise collections, which is among the effects of the bureau’s strengthened digitization, inspection, and border protection efforts implemented during the year,” Treasury said.
However, collections fell 2.45 percent short of the ₱939.7 billion full-year target due to lower tariffs on rice, electric vehicles, and meat.
Non-tax revenues surged to ₱618.3 billion in 2024, a increase of 56.61 percent year-on-year and exceeding the revised target by 37.53 percent. This was driven by windfall collections, including a ₱30 billion public-private partnership (PPP) concession fee and ₱167.2 billion in fund transfers from the Philippine Health Insurance Corp. (PhilHealth) and the Philippine Deposit Insurance Corp. (PDIC).
Even without these fund transfers, non-tax collections still reached ₱451.1 billion, slightly surpassing the adjusted target.
The treasurycollected P 283.4 billion in income for the year, up nearly 25 percent from 2023, driven by higher dividends and other remittances.
This exceeded the revised 2024 target by 51.52 percent, with December income reaching P50.7 billion. A key contributor was the P 40 billion additional dividend remittance from the Bangko Sentral ng Pilipinas (BSP).
Revenue from other non-tax sources doubled to P 335.0 billion, surpassing the revised target by 27.56 percent due to one-off remittances.
Government spending reached ₱5.925 trillion in last year, up 11.04 percent from the previous year and 2.97 percent above the revised target. The increase was driven by infrastructure projects, health and social programs, and salary adjustments for government employees.
Additional expenditures from Unprogrammed Appropriations, including health benefits and financial aid, also contributed to higher disbursements. Key programs included medical assistance, crisis support, and financial aid for rice farmers.
Primary expenditures for 2024 totaled ₱5.162 trillion, exceeding both the revised target and last year’s levels. Interest payments rose 21.48 percent to ₱763.3 billion due to higher rates and forex conditions but remained within target.
The government's revenue effort rose to 16.72 percent in 2024, exceeding both 2023 levels and the revised target, while tax effort increased to 14.38 percent.
Expenditures as a share of GDP climbed to 22.41 percent, with interest payments making up a larger portion of revenue and spending.
