The national government (NG) reported a budgetary shortfall of P90.9 billion in June, or double the shortfall recorded in the same month last year of P45.2 billion, data from the Bureau of the Treasury (BTr) showed.
According to the BTr, the budget deficit reflects the 23-percent rise in expenditures amounting to P270.0 billion, against revenue growth of 2 percent for the month amounting to P179.8 billion.
In the first six months, the government reported a budget deficit of P154.5 billion, higher by 28 percent, from the P120.3 billion in the January-to-June period last year.
According to Budget Secretary Benjamin E. Diokno, the six-month shortfall showed a P10.7 billion surfeit in expenditures given the anticipated shortfall of only P143.8 billion.
“This is more as a result of P16.6 billion undercollection in tax revenues. The higher-than-program deficit should not be a cause for concern. The annual deficit target is P482.1 billion. Expenditures are on the dot. Underspending, the plague of the previous administration, appears to be a thing of the past,” Diokno said in a statement.
BTr data further showed revenues reaching P179.8 billion in June, or 2 percent higher year-on-year, compared to 2016’s P175.6 billion. Year-to-date collection amounted to P1.176 trillion, a 7-percent increase over the previous year’s P1.101 trillion and only P16.6 billion or 1 percent below the program of P1.192 trillion.
The Bureau of Internal Revenue (BIR) collected P131.2 billion in June, up 6 percent, compared to last year’s P124 billion. Year-to-date, BIR performance lags behind the program by 4 percent, or P33.7 billion.
“BIR collections have grown consistently since the beginning of 2017, resulting in a P848-billion cumulative collection, which is P64.6 billion, or 8 percent higher, compared to the same period in 2016,” the BTr said.
The Bureau of Customs collected P35.4 billion, roughly the same amount it had in June the year prior of P35.2 billion. Stronger collections in earlier months allowed for 10-percent growth in the year-to-date total of P210.3 billion in customs revenues, which was short of program by 3 percent.
“For nontax revenues, total income collected by the BTr decreased by 8 percent year-on-year to P4.7 billion, due largely to lower remittance of NG Share in the Philippine Amusement and Gaming Corp. income that fell by P716 million. This was partially offset by higher interest income on NG deposits and collection of Foreign Exchange Risk Cover fees, which increased by P215 million and P243 million, respectively,” it added.
BTr income in the first six months was down 17 percent to P52.7 billion. But, despite the contraction, the bureau still beat its six-month target by 54 percent to P34.2 billion. To date, the NG collected 90 percent of its P58.6 billion full-year target.
Nontax revenue from other offices exhibited a year-on-year contraction of 28 percent, totaling P7.0 billion. Year-to-date revenue settled at P54.6 billion, reflecting 1-percent growth over 2016’s level of only P54.3 billion.
Meanwhile, government expenditures continued its double-digit growth, showing a 23-percent increase to P270.7 billion in June 2017, compared to the P220.8 billion.
Of the total, interest payments reached P19.3 billion, which rose by 9 percent from the P17.7 billion in 2016, while other expenditures totaled P251.4 billion, which expanded by 24 percent, from the 203.1 billion in June last year.
“Part of the higher expenditure for the month can be attributed to the P35.5-billion budgetary support to government-owned and -controlled corporations, which has more than doubled year-on-year. In addition, releases to local government units is also up by P18.1 billion compared to last year,” the BTr added.
For the month the government posted a primary deficit of P71.6 billion, more than double the amount posted last year of only P27.5 billion. This caused the first semester’s cumulative figure to also slip into a deficit of P2.9 billion.