Govt posts P86.4-B budget deficit in July
The government incurred a wider budget deficit in July as state spending grew faster than revenues, Treasury bureau data showed on Wednesday.
The month’s P86.4-billion shortfall was wider than the P54.3-billion and P50.5-billion gaps respectively posted in June and a year earlier.
Government revenues rose by 24 percent to P241.7 billion, from P194.6 billion last year, while expenditures grew 34 percent to P328.1 billion from P245.1 billion.
The Bureau of Internal Revenue accounted for the bulk of collections with P164 billion, 19 percent higher compared to the year-earlier P138.1 billion.
The Bureau of Customs netted P52.1 billion—a 49-percent gain from last year’s P35 billion—while other offices contributed P1.7 billion, bringing total tax revenues for July to P217.8 billion.
“Strong enforcement and revenue enhancement measures, coupled with the weaker peso and higher oil price allowed the [Customs] bureau to sustain its strong year-on-year growth for the seventh consecutive month of the year,” the Treasury said in a statement.
Non-tax earnings, meanwhile, totaled P23.9 billion with the Treasury contributing P11.8 billion—up 39 percent.
The bureau attributed its July income to higher dividends from stocks held by the government and the latter’s share of Philippine Amusement and Gaming Corp. and Manila International Airport Authority profits.
Other offices contributed P12.2 billion, 6 percent higher from last year.
The bulk of government spending was for primary expenditures, which rose by 41 percent to P283.3 billion. Interest payments (IP) of P44.8 billion accounted for the rest of state spending for the month.
“The lower domestic IP on account of debt that matured last year was offset by the increase in foreign payments from new bonds issued in February 2018 and in part due to the depreciation of the peso,” the Treasury explained.
Seven-month tally
July’s results led to a cumulative budget shortfall of P279.4 billion for the first seven months of the year, higher than the P205-billion deficit during the comparative 2017 period.
January to July revenues grew 21 percent year-on-year to P1.652 trillion, from P1.371 trillion, while year-to-date expenditures registered growth of 23 percent to P1.931 trillion from P1.576 trillion.
Primary expenditures rose 25 percent to P1.721 trillion, while interest payments recorded 7 percent growth to P210.4 billion.
Netting out interest payments, the government recorded a P41.5-billion primary deficit in July, wider than the P5.9 billion posted last year.
Year to date, the primary balance hit a deficit of P69 billion, wider than last year’s P8.8-billion shortfall.
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