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BusinessMirror
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A broader look at today’s business
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Saturday, March 21, 2026 Vol. 21 No. 160
“As a net oil importer, the Philippines is particularly sensitive to rising global oil prices, which inflate the import bill and pressure the current account.” — John Paolo R. Rivera, Philippine Institute for Development Studies
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+ $3.09B 2026 (Feb) 2025 (Feb)
Key Drivers
– $2.28B
“The February BOP deficit was largely driven by higher import costs—especially oil—combined with softer capital inflows as investors stayed cautious.” — Jonathan L. Ravelas, Reyes Tacandong & Co.
By Reine Juvierre S. Alberto
Experts sounded the alarm after the Bangko Sentral ng Pilipinas (BSP) released data showing the country’s balance of payments (BOP) swinging to a $2.28-billion deficit in February, a reversal of the $3.09-billion surplus posted a year ago. This brought the January to February 2026 period outcome to an overall deficit of $2.7 billion. The $2.28-billion BOP gap posted in February is the widest in
Higher oil import costs Weaker peso / more expensive imports n Capital outflows / cautious investors n n
10 months or since April 2025. Jonathan L. Ravelas, Senior Adviser at professional services firm Reyes Tacandong & Co., said the February BOP deficit “was largely driven by higher import costs—especially oil—combined with softer capital inflows as investors stayed cautious.” “A weaker peso added to the pressure by making imports more expensive,” he added. See “BOP,” A2
RISING THREATS, FADING SHIELDS:
Philippines convenes to save its mangroves
BM GRAPHIC: ED DAVAD/SOURCE: BSP
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DEPARTMENT OF SCIENCE AND TECHNOLOGY
2018 BANTOG MEDIA AWARDS
BIR: REVENUE GOAL STILL WITHIN REACH DESPITE MIDEAST CRISIS
FROM SURPLUS TO DEFICIT
WEAKER peso, coupled with elevated oil prices due to Middle East tensions, could inflate the country’s import bill which can widen the country’s “external imbalances,” analysts warned.
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‘WEAK PESO, EXPENSIVE OIL TO WIDEN BALANCE OF PAYMENTS DEFICIT’ By Andrea E. San Juan
EJAP JOURNALISM AWARDS
HE Bureau of Internal Revenue (BIR) is standing firm on its revenue target this year despite mounting global uncertainties, including tensions in the Middle East, after its collections rose to P530.055 billion in the first two months of the year. Internal Revenue Commissioner Charlito Martin R. Mendoza acknowledged that the outlook for 2026 is “very challenging,” particularly amid the geopolitical tensions in the Middle East. Despite these risks, Mendoza expressed confidence that the agency will be able to hit its full-year revenue target of P3.579 trillion. “Yes, we’re confident. Our collection efforts will continue,” Mendoza told BusinessMirror when asked if the agency can meet its target even with a potentially weaker economic environment. “We just have to do our best and maximize our collection through the reforms that we’re doing—our digitalization and the streamlined processes.” “We’re revisiting our old regulations and see how it can be further improved and make it easier for our taxpayers,” he added. Preliminary data from the BIR showed it collected P530.055 billion from January to February 2026. This is 2.97 percent higher than the
₧530.055B
Bureau of Internal Revenue collections for January–February 2026, reflecting a 2.97% increase year-on-year.
“Yes, we’re confident. Our collection efforts will continue. We just have to do our best and maximize our collection through the reforms that we’re doing—our digitalization and the streamlined processes.” — BIR Commissioner Charlito Martin R. Mendoza
P514.748 billion collected during the same period in 2025. The BIR said in a statement that the collection reflects “steady improvements driven by intensified tax administration, stronger enforcement, and ongoing measures to boost taxpayer compliance nationwide.” The two-month collection also exceeded the BIR’s internal collection target of P527.775 billion by P2.280 See “BIR,” A2
Budget surplus doubles on cautious spending
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A FISHERMAN navigates his boat along a narrow path in the mangrove forest in Del Carmen town, Siargao Island, Surigao del Norte.
A female Giant golden-crowned flying fox (Acerodon jubatus) roosts on a branch of a mangrove while feeding her pup as they wait for the sun to set and start their evening forage in Dinagat Island.
A Rufous-fronted tailorbird (Orthotomus frontalis) endemic to parts of the Southern and Eastern Philippines perched along the branch of a Rhizophora along the mangrove forest in Del Carmen, Surigao del Norte.
Text & Photos by Erwin M. Mascariñas
holders from across the country will converge in Quezon City for the Philippine Mangrove Conference 2026. Set on March 24 to 26, anchored on the theme “Ensuring Accountable Pathways for Resilient Communities,” the inaugural national conference organized by the Global Mangrove Alliance
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MID the rising threats to the coastal communities throughout the archipelago from intensified storms, rising sea levels, shifting coastlines, and infrastructure developments that challenge science based conservation initiatives, hundreds of stake-
A fisherman holds several mangrove propagules for planting as he balances himself along the waterway in Del Carmen town, Siargao Island, Surigao del Norte.
See “Mangroves,” A2
HE national government’s budget surplus more than doubled to P165.4 billion in January 2026, as spending was significantly lower while revenues improved modestly. Latest data from the Bureau of the Treasury (BTr) showed the government’s surplus surged by 141.91 percent to P165.4 billion in January 2026 from P68.4 billion in the same month a year ago. According to Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., the record January surplus—achieved despite a low single-digit growth in revenues—may reflect more disciplined fiscal management or cautious underspending by the government to prevent risk of corruption. “January’s budget surplus is a good headline, but it’s mostly driven by timing—strong early revenues and slower spending— rather than a sign of deep structural strength,” Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., added. BTr data showed revenues amounting to P468.9 billion outpaced expenditures of P303.5 billion during the first month of the year. This comes after expenditures dropped by 23.9 percent yearon-year from P398.8 billion as a consequence of the rescheduling of transfers to local government units. Last year also had large capital disbursements due to frontloading of some expenditures before the election ban and payment of past obligations, the Treasury said. Despite the decline in expenditures, interest payments jumped by 22.39 percent to P127.8 billion in January 2026 from P104.4 billion in the same month last year. Primary expenditures, mean-
₧165.4B National government budget surplus in January 2026, up 141.91% year-on-year, driven mainly by lower spending rather than strong revenue growth.
“Anti-corruption measures and other reforms to further level up governance standards may have caused greater caution on some government spending, especially on infrastructure to prevent the risk of corruption.”— Michael L. Ricafort, Rizal Commercial Banking Corp.
while, fell by 40.32 percent yearon-year to P175.7 billion from P294.4 billion. “Anti-corruption measures and other reforms to further level up governance standards may have caused greater caution on some government spending, especially on infrastructure to prevent the risk of corruption,” Ricafort said. On the other side of the balance sheet, revenues posted a marginal increase of 0.36 percent from the P1467.1 billion recorded during the same month a year ago. Broken down, tax revenues accounted for 94.43 percent or P442.8 billion of the total revenues collected in the first month of 2026. This showed an increase of 1.21 percent from the P437.5 billion raised last year. The Bureau of Internal RevSee “Budget,” A2
PESO EXCHANGE RATES n US 59.5620 n JAPAN 0.3729 n UK 79.0686 n HK 7.5992 n CHINA 8.6473 n SINGAPORE 46.4313 n AUSTRALIA 41.8840 n EU 68.3176 n KOREA 0.0395 n SAUDI ARABIA 15.8663 Source: BSP (March 19, 2026)