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Budget deficit lower than expected

Gov’t misses collection, spending targets in Q1

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Budget Secretary Florencio B. Abad. INQUIRER FILE PHOTO

The government incurred a budget deficit of P66.5 billion in the first quarter, almost double the amount registered in the same period last year, but 10 percent, or P7.4 billion, lower than planned.

According to data the Bureau of the Treasury released Thursday, deficit spending fell short of the goal as the government missed both its tax collection and spending targets set for the period.

From January to March, expenditures reached P430.8 billion. It was P21.9 billion, or 5 percent, less than the planned P452.7 billion.

However, spending was 9 percent higher than that of the same quarter in 2012.

Budget Secretary Florencio B. Abad said in a statement that “although our year-on-year growth figures for the first quarter may appear unremarkable, the data that defines these spending levels is actually very encouraging.”

In explaining the single-digit growth in expenditures, Abad pointed out that the government spent less on items that contributed little to Malacañang’s development strategy, such as tax subsidies to state firms or the settlement of maturing loans taken out by other public entities.

“Disbursements are going exactly where they’re urgently needed—in programs and projects designed to boost our growth prospects and which will translate to direct, immediate and sustainable benefits to all Filipinos,” Abad said.

In the first quarter revenue reached P364.3 billion, which was P14.5 billion, or 4 percent, short of the government’s P378.8-billion goal.

But compared to the same period last year, actual collections improved by one percent from P361 billion.

In a separate statement, Finance Secretary Cesar V. Purisima said that the government has started to implement certain initiatives that would “further strengthen” the collection performance of revenue agencies.

One such project, Purisima said, is the use of data analytics, complemented by an advertising campaign, to increase compliance among self-employed taxpayers.

“We expect our anti-smuggling measures, including port accreditation and import plan monitoring, to have a significant impact on our revenues this year,” Purisima said.

“Our drive for good governance will manifest in budget reports that continue to get closer to targets.”

From January to March, the BIR contributed P224.1 billion in revenue. It was P14 billion, or 5 percent, short of the three-month target set by the inter-agency Development Budget Coordination Committee.

But the same figure was P15 billion, or 6.6 percent, higher than that of the same period last year.

The Bureau of Customs chipped in P68.8 billion. It was P7.6 billion, or 10 percent, short of the target. It was also P713 million, or one percent, less than the collections registered a year ago.

Also, the Bureau of the Treasury turned in P24.9 billion, exceeding its target for the first quarter by P4.3 billion. Still, it was P12.8 billion, or 34 percent, lower than that of a year ago.


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  • KappaPhiPhi

    para que pa nag increase ng budget if we are not planning to spend it? in the next issue, the unspent budget will be labelled as savings. siguro dapat ang gdp growth natin ngayong election year should be a mile away from gma’s.

  • ConcernedCitizenPh

    Don’t allow government revenues to be compromised. Much better to pay the equivalent of facilitation fees to the crocs than to compromise the much bigger amount of customs duties and taxes. Corruption is a privilege of a few not all.

  • EOJ

    The way government is doing, the deficit may be as low as 30% of GDP by 2016 and the deficit may be erased by the time of the next president.

    • txtman

      AHAHAHAHA
      HOW CAN YOU DO THAT?
      KUNG DOBLE NGA ANG UTANG NGAYON?
      .
      ANY MATHEMATICIAN KNOWS
      NA PAPAANO LIIT ANG PERCENTAGE SA GDP
      KUNG DOBLENG UTANG?
      .
      KUNG HINDI NAMAN NADOBLE OR TRIPLE ANG GDP?
      HINDI BA, IT GROWS TO ONLY 6.6%?
      PAPAANO YAN LILIIT?
      .
      ANG LUMIIT YUNG COLLECTIONS NILA, HINDI BA?
      OH, ANONG MAGIC aka HUKUSPUKOS YAN?
      AHAHAHAHA
      .
      BULADAS NA NAMAN ITO
      GINAGAWA NAMAN NILANG
      BOBO MGA PINOYS
      AHAHAHA
      .
      ANO YAN BAGONG THEORY OF MATHEMATICS?
      WOW, HANEP!
      NOBEL PRIZE YANG NENG
      AHAHAHAHAHA
      IT WILL BE CALLED AQUINOCONDONOMICS
      PITIFUL
      AHAHAHAHA

      • txtman

        FACTS:
        9% INCREASED IN SPENDING
        ……. MORE THAN 40 BILLIONS
        .
        1% IMPROVEMENT IN COLLECTING MONEY
        …… 3 BILLIONS & 600 MILLIONS PESOS ADDITIONAL ONLY
        .
        100 % INCREASED OF UTANG ( DOBLE ANG UTANG)
        …… 66.5 BILLIONS
        .
        MEANING SA NAGASTOS NILANG 430.8 BILLIONS
        .
        66. 5 BILLIONS AY INUTANG- DOBLE LAST YEAR
        AS SIMPLE AS THAT
        .

        OH, PAPAANO MAGANDA YAN?
        AHAHAHAHA
        PITIFUL

  • http://twitter.com/CeriseDavid Cerise David

    Ang galing talaga mag-rephrase ng spin doctors.

    DEFICIT LOWER THAN EXPECTED <– headline
    but almost double last year. <– small print

  • carlcid

    This administration pays too much attention to the growth and deficit figures, to the detriment of job creation and ensuring that the benefits of growth filter down to the countryside and the grassroots. What we have is a mindless pursuit of “investment grade” ratings and GDP growth. Inclusive growth isn’t on the agenda, save for that pathetic cash transfer program which is only a political patronage tool. Let us remember that, as recently as 2004, Greece had a rating of “A+”, that’s more than “investment grade”, and far more than what the Philippines has achieved. Yet, as Greece has shown, those “investment grade” ratings can evaporate almost overnight.

    • http://twitter.com/erncastillo ern

      the government cannot directly create jobs. They must encourage investors who will be employers, and the investment grade is one such tool.

      “This administration…….”

      so you are one political oppositionist wishing to destroy this administration instead of helping.

      • carlcid

        Trolls and paid hacks of the administration will be jealously guarding against anything that strays from the propaganda line. One only has to take in the full account of the news and separate the hype from the news that matters. It is a fact that investment grade ratings have not exactly been that helpful, nor have they been a magic wand to create prosperity. Look at Greece, look at Cyprus. Are people aware that Cyprus had investment grade ratings not too long ago? Where is Cyprus now?

      • superpilipinas

        he-he-he…..you have not been reading all the news…you seem to be reading only this administrations’ pronouncements and propaganda. read what ADB and NSCB are saying…poverty has not changed….1 million join the unemployed….in spite of economic progress indications, no industrialization results to no jobs…..

        no one is destroying the administration more than itself.

        he-he-he…i voted PNoy in 2010 and gave him the benefit of the doubt…now it turns out that he is indeed a mediocre performer…..the only consolation price is that even if he is incompetent….he was the least corrupt of the three strongest candidates.

  • JOHNCeneza

    Please solve the inefficiencies of government spending also.

  • bryanbrian

    Good job! The deficit is getting smaller and smaller every year under PNoy unlike during the 9 years of the corrupt arroyo regime pataas ng pataas ang deficit.

    I have no doubt by next year, the deficit will be below 50% of GDP which is way below the 70% of GDP under arroyo.

    • http://twitter.com/CeriseDavid Cerise David

      Deficit is TWICE that of last year. What are you talking about?

      • yesyesyo

        Despite the fact that it doubled compared to last year, it is still lower than planned. The good thing is the govt is increasing spending for social services as planned and yet actually spend below target because revenue is also increasing by leaps and bounds.

      • http://twitter.com/CeriseDavid Cerise David

        Yes of course. If one looks long and hard enough, one can always find something positive even in the worst situations.

  • txtman

    ANO DAW?
    INIKOT-IKOT PA TAYO ANO?
    IN SHORT
    DOBLE ANG INUTANG NG PINAS
    .
    FOR THIS YEAR COMPARED LAST YEAR
    IN THE SAME PERIOD
    ANONG MAGANDA DYAN?
    DOBLE UTANG MO
    VERY GOOD?
    .
    ANONG KLASENG ECONOMISTA YAN?
    AHAHAHA
    KA INGGO MATANONG KITA
    NADOBLE UTANG MO
    VERY GOOD?
    PITIFUL
    AHAHAHAHA



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