MANILA — The Development Budget Coordination Committee (DBCC) anticipates the national government's revenue collection for the current year to surpass its initial target.
According to Philippines News Agency, the expected total revenue collection for this year is projected between PHP 3.84 trillion to PHP 3.90 trillion. This forecast exceeds the PHP 3.73 trillion target set in April 2023 during the 184th DBCC meeting. The committee, comprising the Department of Budget and Management (DBM), Department of Finance (DOF), National Economic and Development Authority, and the Bangko Sentral ng Pilipinas, released these figures following a comprehensive analysis of the country's fiscal performance.
For the first nine months of the year, the DBCC reported that total revenues reached PHP 2.84 trillion, which marks a 6.8 percent increase compared to the same period last year. Both tax and non-tax revenues showed positive trends, with increases of 6.4 percent and 10.5 percent, respectively. This growth in revenue has been attributed to the robust collections from the Bureau of Customs (BOC) and an uptick in non-tax revenues amounting to PHP 152.57 billion.
The DBCC also highlighted that the projected revenue effort for 2023 is expected to reach at least 15.7 percent of GDP, outperforming the Medium-Term Fiscal Framework and the 184th DBCC meeting targets, which stood at 15.3 percent and 15.2 percent, respectively. To continue this positive trajectory, the BOC and the Bureau of Internal Revenue are implementing reforms designed to bolster tax administration and revenue collection. These reforms include advancing digitalization efforts to curb corruption, increase transparency, and streamline the process of tax payment.
Furthermore, the DBCC is engaging with Congress to secure the passage of remaining tax reforms from the previous administration, alongside new tax measures. These measures cover a wide range of areas, including excise tax on single-use plastics, the mining fiscal regime, road users' tax, and taxes on sweetened beverages, junk foods, and pre-mixed alcoholic drinks. Reforms in the digital services tax, carbon taxation, capital market development, and military personnel pension are also on the agenda.
As for government spending, the DBCC foresees an upswing in the fourth quarter, driven by escalated program implementations in various sectors, including infrastructure, transportation, labor, social protection, and education.