Gov’t yet to meet spending target as Q1 deficit hits P33.9-B

MANILA, Philippines – The fiscal deficit of the national government reached P33.91 billion in the first 3 months of the year, less than half of the programed P82 billion, the Department of Finance (DOF) reported on Wednesday, April 25.

This shows that while government spending has improved, it has yet to meet its expenditures program for the quarter.

Finance Secretary Cesar Purisima said this data remains in line with the Aquino administration’s strategy to consolidate the government’s fiscal position.

Revenue collections reached P360.974 billion during the quarter, while expenditures amounted to P394.883 billion.

The following revenue collecting agencies contributed the following:

• P229.044 billion from the Bureau of Internal Revenue (BIR)
• P69.529 billion from Bureau of Customs (BOC)
• P37.760 billion from the Bureau of the Treasury (BTr)
• P24.641 billion from Other offices

The Aquino government is aiming to increase revenue collections through an ongoing name-and-shame campaign, and hike spending to fuel economic growth. 

Government underspending, especially in infrastructure, was partly blamed for the slower gross domestic growth of 3.7% in 2011 against the previous year’s 7.6%.

Nonetheless, Purisima reiterated the need to pass “two vital revenue bills” that shall reform the excise tax system and rationalize incentives given to investors.

“These developments only strengthen our resolve to continue with our initiatives not only to attain investment grade rating and lower our borrowing costs, but also to boost investments in social and economic services to improve productivity and economic growth,” Purisima said. – Rappler.com