REVENUE collection targets for this year have been lowered following downward revision to economic growth assumptions.
Data obtained by reporters on Thursday showed that the government was now targeting revenues of P4.824 trillion for this year, down from P4.983 trillion previously.
The Bureau of Internal Revenue (BIR) is tasked to collect P3.431 trillion, lower than the P3.579 trillion set in the 2026 Budget of Expenditures and Sources of Financing.
The Bureau of Customs (BOC) target was also lowered to P1.003 trillion from P1.013 trillion. Non-tax revenues were set at P349.9 billion, higher than the previous program of P249.1 billion.
Both agencies failed to hit the revenue collection targets last year. The BIR collected only P3.105 trillion in 2025, falling short of the P3.232-trillion goal but still higher than the P2.83 trillion recorded in 2024.
The BOC, meanwhile, collected P934.4 billion from January to December, below the P958.7-billion target. Still, the amount was 1.9 percent higher than 2024’s P916.674 billion.
The government posted a budget deficit of P157.6 billion in November, latest data showed, with revenues at P340.7 billion and spending having hit P498.3 billion. This was a reversal from October’s P11.2-billion surplus but was smaller than the year-earlier shortfall of P213 billion.
The budget deficit totaled P1.26 trillion year to date, higher than the P1.18 trillion recorded in January-November 2024.
On Wednesday, Finance Secretary Frederick Go said government agencies were committed to “fiscal discipline and smart spending.”
“We will uphold this by reviewing all our respective expenditure programs to ensure that we spend on what is necessary and focus on productive and efficient spending, especially where the greatest multipliers are,” he said.
“At least this is the call that the Department of Finance is making on all departments and agencies of government,” he added.
The Finance chief said the Philippine economy’s long-term fundamentals remain intact and on solid footing. He expects growth of above 5.0 percent this year with the economy “expected to regain momentum and bounce back.”
Economic growth is expected to have fallen well short of the 2025 target of 5.5 percent to 6.5 percent due to the impact of a massive flood control project scandal on state spending and investor sentiment.
Preliminary data for the fourth quarter and the full year is scheduled to be released on Jan. 29.
The Marcos administration has lowered its economic growth targets up to the end of its term given continued global uncertainties and the corruption scandal.
This year’s goal is now 5.0 percent to 6.0 percent while that for 2027 is 5.5 percent to 6.5 percent, down from 6.0 percent to 7.0 percent previously. The target for 2028 was kept at 6.0 percent to 7.0 percent.
