Thailand
Philippines: March budget gap widens Q1 shortfall
THE government’s budget deficit rose to P210.3 billion in March following a double-digit revenue drop, Treasury bureau data showed on Tuesday.
Spending also fell, by 2.62 percent, but earnings plunged by nearly 12 percent, leading to a shortfall 12.04 percent higher compared to year-earlier P187.7 billion.
Year to date, the budget gap rose to P270.9 billion for the first quarter, down 14.51 percent from P316.8 billion in the comparable 2022 period.
Three-month revenue collections improved by 4.38 percent to P818.7 billion from P784.4 billion while spending contracted by 1.06 percent to P1.09 trillion from last year’s P1.101 trillion.
Tax collections accounted for 87.89 percent or P719.5 billion of first-quarter revenues while non-tax revenues contributed P99.2 billion or 12.11 percent.
The revenue taken for March alone reached P258.7 billion, 11.99 percent lower than the year-earlier P293.9 billion. The Bureau of Internal Revenue (BIR) accounted for more than half or P141 billion, down 17.27 percent year on year.
The BIR was ahead year to date, with its P505.2-billion tally, 2.4 percent higher than the first quarter of 2022’s P5.02.8 billion.
The Bureau of Customs, meanwhile, raised P80.3 billion in March, 13.51 percent higher compared to last year. The P213.8-billion tally as of end-March was also 13.40-percent up from the P188.6 billion a year earlier.
Income from the Treasury fell to P14.9 billion in March, down by 55.47 percent, and its first-quarter total was also 19.94 percent lower at P39.0 billion.
Non-tax collections from other offices, including privatization proceeds and fees and charges, increased to P22.0 billion from P16.7 billion, leading to 58.59-percent rise in cumulative revenue to P60.1 billion.
Spending for March, meanwhile, went down by 2.62 percent to P468.9 billion from P481.5 billion last year, largely due to the lower national tax allotment shares of local governments as well as the timing of releases for items such as Transportation department’s public utility vehicle service contracting and fuel subsidy programs.
Primary expenditures (net of interest payments) reached P408.0 billion, 4.22 percent below the previous year’s figure. This allowed for a 0.45-percent dip in first-quarter primary expenditures to P947.6 billion.
Interest payments (IP) for March stood at P60.9 billion, 9.63 percent higher. IP as of end-March amounted to P142.0 billion, down by 4.92 percent year on year.
Total IP accounted for 13.03 percent of first-quarter expenditures, down from 13.56 percent a year ago. As a percentage of revenues, IP went down to 17.34 percent from 19.04 percent.
Excluding interest payments from expenditures, the government’s primary deficit in March hit P149.4 billion, up by 13.05 percent. The cumulative primary deficit declined by 23.05 percent to P128.9 billion.
Sought for comment, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the reduction of individual income tax rates for most income brackets likely led to the March shortfall.
He added, however, that would have helped more people cope with inflation by increasing take-home pay as well as stimulating more spending and other economic activities, resulting in faster overall economic growth.
Source: https://www.manilatimes.net/2023/05/03/business/top-business/march-budget-gap-widens-q1-shortfall/1889657