THE national government (NG) reported a fiscal deficit of P2.6 billion for August this year, with spending outpacing revenue growth, and pushing the eight-month total to a deficit of P282 billion.
Data from the Bureau of the Treasury (BTr) showed the government’s August deficit reverses the budget surplus of P28.8 billion recorded in the same month in 2017.
Revenues collected by the government amounted to P256.9 billion, increasing by 11 percent, compared to the P230.4 billion registered last year. Spending, though, reached P259.5 billion, or 29 percent higher than the P201.6 billion in August 2017.
This drove the cumulative budget deficit as of end-August this year to P282 billion, a 60-percent spike compared to the P176.2 billion recorded for the same period in 2017.
According to the BTr, the year-to-date fiscal deficit of P282 billion comprises 54 percent of the programmed full-year deficit of P523.7 billion.
For August, revenues collected by the government of P256.9 billion allowed the year-to-date collections to reach P1.909 trillion, showing an increase of 19 percent from the P1.601 trillion recorded last year.
“To date, 67 percent of the P2.846-trillion full-year revenue program has been collected,” the BTr said. The Bureau of Internal Revenue (BIR) reported a collection of P185.1 billion for the month, posting an 8-percent increase compared to the P171.7 billion recorded last year.
Total BIR collections stood at P1.313.6 trillion as of end-August, up 13 percent from P1.157 trillion in the same period last year.
Collections from the Bureau of Customs (BOC) showed a 36-percent growth, amounting to P52 billion for the month compared to the previous P38.3 billion last year. Year-to-date collections amounted to P383.5 billion, better by 35 percent over the same period last year of P283.6 billion.
Meanwhile, government expenditures sustained last month’s momentum and amounted to P259.5 billion in August, up 29 percent from P201.6 billion last year.
From January to August, NG expenditures stood at P2.191 trillion, 23 percent higher than spending for the same period in 2017 of P1.777 trillion.
The BTr said that 65 percent of the P3.370-trillion full-year program for government spending has been disbursed as of end-August.
Interest payments (IP) accounted for 11 percent of total expenditures for August. IP for the month increased by 7 percent to reach P28.3 billion, from the P26.4 billion in 2017. This raised cumulative IP level by 7 percent to P238.7 billion, from P222.6 billion in 2017.
“Excluding IPs from total spending, the NG was able to revert to a primary surplus amounting to P25.7 billion for the month, its third time to attain a primary surplus since January this year. This resulted in a year-to-date primary deficit of P43.3 billion, reversing the P46.4-billion primary surplus posted in the first eight months of 2017,” the BTr added.