FX.co ★ Philippines Budget Surplus Widens in January

The Philippine government’s budget surplus widened sharply to PHP 165.4 billion in January 2026, more than double the PHP 68.4 billion recorded in the same month a year earlier. Total government revenues inched up by 0.4% year-on-year to PHP 468.9 billion, supported by a 1.21% rise in tax collections to PHP 442.8 billion, which made up 94.5% of total revenues. In contrast, non-tax revenues fell by 12.08% to PHP 26.0 billion.

On the expenditure side, government spending dropped markedly by 23.9% to PHP 303.5 billion. This decline was largely attributed to the rescheduling of transfers to local government units and to base effects from elevated capital outlays in January of the previous year. Primary expenditures declined by 40.3% to PHP 175.7 billion, while interest payments increased by 22.4% to PHP 127.8 billion, reflecting higher debt servicing costs and shifts in the timing of payments.

Excluding interest payments, the national government’s primary surplus surged to PHP 293.2 billion in January 2026, up from PHP 172.8 billion in January 2025.