THE national government swung to a budget deficit of P37.6 billion in February after posting a budget surplus in January amounting to P23 billion, according to the Bureau of the Treasury (BTr).
For February alone, revenues recorded a 2.35-percent growth year-on-year to P206.8 billion compared to P202.1 billion in 2019.
Meanwhile, expenditures for the month are down by 12.22 percent to settle at P244.4 billion from last year’s P278.5 billion due to the base effect of the Internal Revenue Allotment (IRA) for local government units for January 2019, which was released in February last year, as well as lower interest payments.
A budget deficit occurs when expenditures exceed revenues.
Despite this, the shortfall for February was barely half the P76.4-billion deficit last year, narrowing the year-to-date budget deficit to P14.6 billion. The January to February budget deficit this year was also lower by 54.30 percent from P31.8 billion in the same period in 2019.
During the first two months of the year, total revenues amounted to P501.5 billion, expanding by 9.29 percent from last year’s P458.8 billion.
As of end-February, the Bureau of Internal Revenue (BIR) collected P337.1 billion, higher by 5.08 percent from P320.8 billion in the same period in 2019.
On the other hand, the Bureau of Customs (BOC) collection as of end-February reached P100.7 billion, surpassing by 8.74 percent its revenue take in the same period last year at P92.6 billion. This, despite the BOC showing a “modest increase” by 1.33 percent for its collection for the month of February alone to reach P44.8 billion compared to P44.2 billion in February 2019.
According to the statement from the BTr, the slow growth for the month was mainly due to the slowdown of importation from China amid the coronavirus outbreak.
The BTr’s total income for the first two months this year also surged by 82.26 percent to P34.2 billion from P18.8 billion in January to February 2019.
This was driven, the BTr said, by early dividend remittance from the Bangko Sentral ng Pilipinas in January and higher Bond Sinking Fund investment performance.
Meanwhile, total expenditures as of end-February also increased to P516 billion, beating last year’s P490.7 billion by 5.17 percent.
Broken down, primary expenditures for the first two months of the year went up by 4.72 percent to P439.3 billion from last year’s P419.4 billion.
Interest payments as of end-February also expanded by 7.79 percent to P76.8 billion from P71.2 billion in the same period last year.
For February alone, productive spending, excluding interest payments, amounted to P229.1 billion, lower by 9.51 percent year-on-year from P253.2 billion in February 2019 due to the timing of IRA payments.
Interest payments for the month also contracted by 39.32 percent year-on-year to P15.4 billion from P25.3 billion due to maturities and premium on reissued Treasury bonds as well as the timing of the payments for the global bonds.
The government also reverted to a primary deficit in February amounting to P22.2 billion, less than half of the P51.1 billion posted for the same month last year.
As of end-February, the cumulative primary surplus was up by 57.98 percent to P62.2 billion from last year’s P39.4 billion.
Image credits: Bernard Testa