Government revenue surpasses 2024 target, hits PHP4.42 Trillion

The national government’s revenue collections reached PHP4.419 trillion in 2024, exceeding the target of PHP4.27 trillion, according to the Bureau of the Treasury (BTr). The figure represents 16.72 percent of the country’s gross domestic product (GDP), marking the highest revenue effort since 1997.

The BTr attributed the higher-than-expected collections to strong non-tax revenues, which saw a 56.61 percent increase to PHP618.3 billion, surpassing the revised full-year goal of PHP449.6 billion. Windfall collections, including a PHP30-billion Public-Private Partnership (PPP) concession fee and PHP167.2 billion in fund balance transfers from the Philippine Health Insurance Corporation (PhilHealth) and the Philippine Deposit Insurance Corporation (PDIC), contributed significantly.

Tax collections from the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) also showed sustained growth. BIR revenues rose 13.29 percent to PHP2.85 trillion, exceeding its full-year target by PHP2.7 billion, largely due to increased Value-Added Tax (VAT) collections. The BOC collected PHP916.7 billion, reflecting a 3.79 percent increase, though it fell short of the PHP939.7-billion target due to tariff reductions on rice, electric vehicles, and extended lower tariffs on meat products.

Government disbursements in 2024 amounted to PHP5.925 trillion, an 11.04 percent increase from 2023 and surpassing the PHP5.75 trillion spending program. The higher expenditures were driven by infrastructure projects under the Department of Public Works and Highways (DPWH), health and social protection programs, and salary adjustments for government employees.

Additional spending from Unprogrammed Appropriations also contributed to the rise in expenditures, covering public health emergency benefits, medical assistance for indigent patients, social welfare programs, and financial support for rice farmers.

Despite the increased spending, the budget deficit narrowed slightly by 0.38 percent to PHP1.506 trillion as revenue growth outpaced expenditure increases. The deficit as a share of GDP improved from 6.22 percent in 2023 to 5.70 percent in 2024, reflecting better fiscal management and revenue collection efforts.