THE national government reported a budget deficit of P558.26 billion for 2018, as its expenditures of P3.408 trillion outpaced its revenues pegged at P2.85 trillion.
Based on documents obtained by reporters, the fiscal deficit recorded by the government last year was 59.23 percent higher than the 2017 deficit of P350.6 billion.
The figure is also higher than the programmed deficit of P526.8 billion for 2018. The initial programmed nominal deficit for 2018 was P523.7 billion.
Government revenues amounted to P2.85 trillion, which is 15.38 percent higher than the 2017 record of P2.47 trillion. The figure is also higher than the target of P2.82 trillion for 2018.
However, expenditures last year reached P3.408 trillion. The figure is 20.85 percent higher than the P2.82 trillion posted in 2017 and the P3.34 trillion programmed for 2018.
In December 2018, the Bureau of the Treasury (BTr) reported that the government ran a P39.1-billion budget deficit for November, widening the fiscal gap owing to strong growth in disbursement of 19 percent combined with a moderate increase in revenue collection of 7 percent.
In January to November 2018, the BTr reported that the government’s fiscal deficit reached P477.2 billion, up by 96 percent from the P243.5 billion recorded in 2017.
Spending on infra, human capital
The Department of Finance (DoF) said the widening of the fiscal gap was “not surprising,” given the government’s goal of rolling out more infrastructure projects under the “Build, Build, Build” (BBB) program and increasing its investments in human capital.
The BBB comprises 75 flagship infrastructure projects identified by the government, which will help usher in the “golden age of infrastructure” in the country. Projects include railways, roads, bridges and airports, among others.
To keep the BBB’s momentum, the Development Budget Coordination Committee (DBCC) revised in July its budget deficit program for 2019 to 3.2 percent, from the original 3 percent.
The Duterte administration is aiming to boost infrastructure spending to 5 to 7 percent of GDP in the medium term, in its bid to upgrade public infrastructure.
Image credits: Alysa Salen