Budget gap narrows in 8 months

MANILA, Philippines — The national government’s fiscal deficit narrowed in the first eight months as the increase in revenues outpaced the growth in public expenditures, according to government data.

Based on preliminary data, the national government incurred a fiscal deficit amounting to P120.4 billion from January to August, 57.3 percent lower than P282.01 billion in the same period of 2018.

This happened as revenues grew by 9.5 percent, outstripping the 0.9 percent increase in government disbursements during the period.

For August alone, the deficit amounted to P2.46 billion, slightly narrower than the P2.59 billion shortfall recorded in the same month last year.

A deficit occurs when the government spends more than the revenues that it generates.

Revenues in the first eight months rose to P2.091 trillion compared to the P1.909 trillion recorded in the same period last year. This was also slightly higher than the government’s P2.089 trillion revenue target for the period.

The Bureau of Internal Revenue (BIR) contributed P1.452 trillion to the state coffers, 10.6 percent up from P1.313 trillion a year ago. This was, however, 4.4 percent below the agency’s P1.519 trillion target.

Revenues generated by the Bureau of Customs (BOC) also climbed by 7.2 percent to P411.25 billion from P383.54 billion last year, but this was 2.7 percent off the bureau’s P422.48 billion goal.

Non-tax revenues, meanwhile, jumped by 16.1 percent to P211.45 billion from P182.07 billion last year. This was likewise 61.6 percent higher than the non-tax revenue program of P130.81 billion for the period.

For the month of August, revenues amounted to P279.775 billion, 8.91 percent up from P256.88 billion a year ago.

On the other hand, government data showed that expenditures inched up by 0.9 percent to P2.211 trillion from January to August from P2.191 trillion in the same eight-month period in 2018.

About P250.65 billion of the total amount went to interest payments, leaving P1.961 trillion for productive spending.

August spending amounted to P282.23 billion, 8.78 percent up from last year’s level of P259.46 billion.

Earlier, the Department of Budget and Management (DBM) said government spending is already starting to normalize, after slowing down due to the delay in the passage of the 2019 General Appropriations Act.

Moreover, the DBM said disbursements are expected to pick up as the expenditures of the DPWH and DOTr will be heavily concentrated in the second semester.