Gov’t incurs P42.8-B deficit in Jan-May

MANILA, Philippines - The government’s balance sheet swung back to deficit in May, but the year-to-date budget gap remains contained and far from the year-end cap, the National Treasurer said yesterday.

The Aquino administration posted a budget deficit of P42.8 billion in the first five months, “which is about 18 percent of the yearly target of P238 billion,” said Rosalia de Leon in a speech at The Asset Forum in Makati City.

Removing interest payments, the government actually still operates in a primary surplus which reached P95.8 billion, she added.

The figure remains “preliminary” with official release of the final data slated later this month, De Leon told reporters after her speech.

The five-month deficit – which indicates the government spent more than it earned – means the government posted a budget gap of P13.25 billion in May alone. The gap is incurred whenever revenues fall below expenditures during a particular period.

The May deficit reversed the previous month’s surplus amounting to P36.803 billion, which was the widest in record.

“Our collection agencies deserve the lion’s share of the credit by collecting at least 10 percent more than they have in 2012,” De Leon told finance officers in the forum.

The Bureau of Internal Revenue (BIR) earlier reported that it collected a total of P111.90 billion last month, 18.35 percent up year-on-year. The month’s haul, however, fell below the P115.12-billion target in May.

For the first five months, the BIR already garnered P504.99 billion, a 14.82-percent improvement from last year.

The BIR accounts for more than three-fourths of tax revenues. The Bureau of Customs, the second main revenue agency that corners a fifth of revenues, is yet to report its collections for May.

Amid the flight of investors from emerging markets such as the Philippines, De Leon assured the private sector that the government remains very liquid and ready to spend to boost economic growth.

“Make no mistake: we are not in dire need of cash,” she said.