Massive privatization to lift gov't revenues

To help fund the P6.793-trillion 2026 national budget, government revenues are projected to reach nearly P5 trillion next year, boosted in part by a P101-billion target from privatization proceeds—massively higher than this year's P5-billion goal.

- BY DERCO ROSAL

According to the Marcos Jr. administration's 2024-2028 fiscal program, this year's revenue target of P4.52 trillion is expected to jump by 10.2 percent to P4.98 trillion in 2026. This would be equivalent to 16.2 percent of gross domestic product (GDP), up from 15.9 percent this year.

Target collections from taxes are set at P4.63 trillion for next year, higher by 10 percent from P4.21 trillion this year. This covers revenues to be raised by the country's main tax agencies—the bureaus of Internal Revenue (BIR) and of Customs (BOC).

Based on the President's budget message, “this will be achieved through intensified digitalization initiatives in our tax-collection system as well as recent tax reforms, particularly the value-added tax (VAT) on nonresident digital service providers (DSPs).”