Philippines sees budget surplus in April on increase in income tax collection

Philippines witnessed a budget surplus in the month of April, following strict deadlines that marked payment of income taxes. Under the Aquino administration, government revenues rose at the fastest pace in 11 months, largely due to strict income tax norms.

The surplus which indicates government earned more than it spent amounted to PHP55 billion, five percent wider than the same period last year, data released by the Bureau of the Treasury showed Wednesday. This trimmed the budget gap for the first four months to PHP69.8 billion.

For this year, revenues that month reached PHP246.6 billion, up 18 percent which was the fastest since May last year's 40-percent increase. Expenditures, meanwhile, continued its double-digit growth at 22 percent to PHP191.6 billion, data showed.

 The Bureau of Internal Revenue (BIR), which collects income taxes, led revenue gains by raising PHP177.7 billion, up by a tenth year-on-year. It missed its PHP222.09-billion goal. On the other hand, the Bureau of Customs, with recovering oil prices, increased its income by 16 percent to PHP32.7 billion in April.

"Consistently solid fiscal performance has put the nation on the firmest fiscal footing in history," outgoing Finance Secretary Cesar Purisima said in a statement.

Meanwhile, BIR and Customs, which collectively account for 90 percent of state revenues, boosted their collections nine and two percent, respectively, in the first four months.