Manila: The national government's fiscal position improved in February, with the budget deficit slightly narrowing to PHP171.2 billion from PHP171.4 billion a year ago, as stronger revenues offset higher spending, the Bureau of the Treasury (BTr) said.

According to Philippines News Agency, in its latest cash operations report, the BTr indicated that the February outcome brought the year-to-date fiscal deficit down to PHP5.8 billion, marking a 94.3-percent drop from PHP103.1 billion recorded in January to February 2025. Government revenues in February rose 43.52 percent to PHP361.3 billion from PHP251.8 billion a year earlier.

For the first two months, revenues grew 15.48 percent to PHP830.2 billion from PHP718.9 billion in the same period last year. Of the total, tax revenues reached PHP692.6 billion, exceeding last year's PHP671.9 billion. Non-tax revenues, which made up 16.57 percent of the total, surged to PHP137.6 billion from PHP47 billion.

Collections by the Bureau of Internal Revenue (BIR) rose to PHP531.9 billion from PHP514.7 billion, driven by improved taxpayer compliance. The Bureau of Customs (BOC) collected PHP154.6 billion, up 2.39 percent, supported by stronger enforcement, compliance measures, and the peso's year-on-year depreciation. Non-tax revenues also increased due to the earlier-than-usual remittance of 2025-earned dividends in February.

Meanwhile, government expenditures climbed 25.83 percent to PHP532.5 billion in February from PHP423.2 billion a year ago. This was mainly due to the spillover of January National Tax Allotment (NTA) and the Bangsamoro Autonomous Region in Muslim Mindanao block grant releases, as well as allocations for local government units' shares in tobacco excise taxes. For January to February, total expenditures reached PHP836 billion, up 1.70 percent from PHP822 billion in 2025, the BTr said.

In a separate statement, Finance Secretary Frederick Go noted that the strong fiscal performance in the first quarter gives the government resources to support the economy. "This fiscal buffer allows us space to provide timely, targeted, and managed subsidies to help those most affected in our country by the Middle East event," Go said. "This performance by the Department of Finance (DOF) and its attached agencies allows the government to maintain fiscal discipline and ensure a sustainable path in managing the current crisis," he added.