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Philippines: Budget deficit narrows to P316.8 billion in 3 months
MANILA, Philippines — The government slashed its budget deficit by more than one percent to about P317 billion in the first quarter as the growth in revenues outpaced the rise in expenditures.
The Bureau of the Treasury yesterday reported that the deficit fell to P316.85 billion in the three months to March, from P321.47 billion in the same period last year.
On an annual basis, the Treasury said revenue collections increased by nearly 13 percent to P784.36 billion. State spending grew as well, but at a slower pace of eight percent to P1.1 trillion.
Broken down, tax revenues rose by almost 12 percent to P697.2 billion in the first quarter, from P623.72 billion a year ago. On the other hand, non-tax income expanded by a fifth to P87.1 billion, from P72.64 billion.
By agency, collections by the Bureau of Internal Revenue jumped by more than seven percent to P502.77 billion, while total revenues by the Bureau of Customs went up by over 26 percent to P188.56 billion. The Bureau of the Treasury also grew its income to P48.74 billion on the back of increased dividends from state-run firms.
For expenditures, the Treasury said primary spending rose by close to seven percent to P951.88 billion in the first quarter, from P892.07 billion a year ago.
Likewise, the Treasury reported that interest payments made by the government to lenders went up by roughly 19 percent to P149.33 billion, from P125.86 billion.
The Treasury attributed the rise in primary disbursements to the increase in allocation for local governments and subsidies for state-owned firms, as they try to recover to normalcy after their programs and projects were suspended at the height of the pandemic.
Based on records, the national tax allotment for localities ballooned by more than 29 percent to P267.36 billion in the first quarter, from P206.87 billion a year ago. Subsidies for state-run firms also spiked by 69 percent to P19.3 billion during the same period.
For March alone, the fiscal deficit slipped by about two percent to P187.67 billion as against the P191.44 billion during the same month in 2021. Revenue collections grew by nearly 36 percent to P293.88 billion, while government expenditures rose by around 18 percent to P481.55 billion.
The budget deficit spiraled to a record P1.67 trillion in 2021, from P1.37 trillion in 2020, pushing the deficit-to-GDP ratio to an all-time high of 8.61 percent.
Source: https://www.philstar.com/business/2022/04/28/2177213/budget-deficit-narrows-p3168-billion-3-months