MANILA, Philippines – The national government recorded a P1.8 billion ($41.20 million*) fiscal deficit in July as revenue generating agencies increased their collections.
The July deficit is down 97% from the same period last year, resulting in a lower cumulative budget shortfall of P55.7 billion ($1.28 billion) for the first 7 months of 2014 from P104.5 billion ($2.39 billion) in 2013, the Bureau of the Treasury (BTr) reported Friday, August 29.
Year-to-date deficit is P55.7 billion ($1.28 billion).
Meanwhile, netting out interest payments from expenditures, the national government recorded a P46.5 billion ($1.06 billion) primary surplus for July, resulting in a cumulative primary surplus of P152.2 billion ($34.8 billion) – P46.1 billion ($1.06 billion) higher than its level over the same period in 2013.
From January to June, the deficit amounted to P54 billion ($1.24 billion), well within the government’s target, the Department of Finance reported in July.
Increased government spending in June resulted in a budget deficit of P62.5 billion ($1.43 billion), a six-fold increase from the P8.5 billion ($194.62 million) posted in the same month of 2013.
The first-half deficit was 5% higher than last year’s figure, and reversed the county’s 5-month surplus. The government recorded a surplus of P8.5 billion ($194.62 million) in the first 5 months.
Revenues up, disbursements down
Total revenues in July hit P166.7 billion ($3.82 billion), a 15% growth versus the same month in 2013, bringing year-to-date collections to P1.10 trillion ($25.18 billion), a 12% increment over comparable figures last year.
The Bureau of Internal Revenue (BIR) collected P119.9 billion ($2.74 billion) in July, posting a double-digit year-on-year increase of 20% – the highest growth in monthly collections attained for the year. Overall, BIR collections grew 10% year-on-year to P763.2 billion ($17.45 billion) for the first 7 months of 2014.
The Bureau of Customs managed a 10% growth for July with P30.5 billion ($698.23 million) actual collections. Customs also has raised P203.9 billion ($4.67 billion) for the year, an 18% year-on-year improvement in performance.
Due to lower interest earned from national government investments and deposits, Bureau of the Treasury (BTr) income amounted to P7.5 billion ($171.68 million) in July, down 6% from the previous year. Despite such, total BTr income of P70.4 billion ($1.61 billion) from January to July still rose by 23% year-on-year, mostly due to the increase in dividend collections and interest income.
Meanwhile, collections from other offices contributed P8.8 billion ($201.28 million), which is 1% lower than collections last year. However, the year-to-date revenue of P63 billion ($1.44 billion) still indicates a 5% improvement in collections over the same period last year.
On the other hand, national government disbursements amounted to P168.5 billion ($3.85 billion) in July, 15% or P29.4 billion ($672.89 million) lower than comparable figures last year.
Year-to-date expenditures stand at P1.16 trillion ($26.55 billion), 6% higher than similar spending for 2013.
Also, interest payments for July declined by 10% year-on-year to P48.2 billion ($1.10 billion) from P53.5 billion ($1.22 million) in 2013 as both domestic and foreign interest payments went down. Similarly, total interest payments of P208 billion ($4.76 billion) from January to July is 1% behind the pace set last year. – Rappler.com
($1 = P43.68)