Budget gap widens to P106B in 9 months

Gov’t spending remains lower than planned

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A laborer works on a road project in Makati City in this file photo. The government deficit for the first nine months of 2012 was registered at P106.1 billion, or just 58 percent of the P183.3 billion that the government intended to spend during the period. AFP PHOTO/JAY DIRECTO

The national government’s budget position went back to a deficit of P34.8 billion in September as revenues barely increased while expenses showed a double-digit jump.

 

Documents from the Bureau of the Treasury showed that the deficit in September brought the shortfall for the first nine months of the year to P106.1 billion, which was just 58 percent of the P183.3 billion that the government intended to spend beyond what it had for the period.

 

However, the nine-month deficit was twice the P53 billion that was recorded in the same period of 2011.

 

January-September spending reached P1.22 trillion, 9.5 percent short of the program for the first three quarters but 14.5 percent higher year on year.

 

Budget Secretary Florencio B. Abad on Wednesday said that while spending was still lower than planned, the shortfall was “significantly narrower” than the 16.1 percent recorded in the same period last year.

 

“With the higher expenditure growth due to improving absorptive capacities of departments and agencies, we are again confident that government spending will contribute significantly to economic growth in the third quarter,” Abad said.

 

Even then, he said there was much room for improvement in the capacity of agencies to implement programs and projects and to disburse released funds.

 

Nine-month revenues reached P1.12 trillion, which was 95.6 percent of the goal for the period but 10 percent higher than year-ago actual take.

 

In September alone, expenditures reached P140.2 billion, 14.1 percent higher than the P122.8 billion spent in the same month last year. Revenues reached P105.3 billion, an increase of 0.9 percent from P104.3 billion a year ago.

 

Finance Secretary Cesar V. Purisima said both major revenue agencies—the Bureau of Internal Revenue and Bureau of Customs—have consistently exceeded the previous year’s collections.

 

“Our aggressive efforts to improve tax compliance have consistently generated fiscal space to provide funding for the Aquino administration’s spending priorities,” Purisima said.

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  • http://pulse.yahoo.com/_SW6KXGNWNTZ2IU3DPAFIYIXNB4 CliffordM

    The government should redouble its effort to combat corruption and significantly reduce the loopholes within the system.Its not the bigger budget that is important but the accomplish work and finished projects and programs that is important.What is the use of the bigger budget when all of it goes to the pocket of the politicians,bureacrats,and contractors conniving.Exactly what is the use?We have to reflect on this.

    • SignTheWaiverNow

      this is exactly, why you see a bigger budget gap compared to the previous year….

      you hit the nail in the coffin, sir!

      tsk tsk tsk….

  • http://pulse.yahoo.com/_POBZSV5PGTGUS3YA2KR2NZI3HA Alex

    From the comments here I would say that it’s premature to compare fiscal performance of this administration from the previous ones. At the end of 2016 we can have a fair evaluation by then.

    • SignTheWaiverNow

      partly true… but with the current trend, i can see that by 2016, you can’t see any improvement….

      and to back up my statement:

      1. our credit rating has improved a lot but do we see any major improvement? zil, none, bokya….
      2. exchange rate has also improved, do we see any improvement? zil, none, bokya….
      3. crime rate has gone up
      4. unemployment remained unchanged

      when you have a leader who do not know where we are going, then you can’t see any or even hope for a better future…. unless of course, luck plays a big role!

      tsk tsk tsk……

  • tadasolo

    there is something utterly wrong about that photo and is endemic to what is wrong with Philippine society about safety for workers. That gentlemen is using a jackhammer without safety shoes, without safety glass, without safety helmet and without ear protection. Don’t we have any safety regulations to take care of our workers????? Where are the government agencies?? SAFETY IS GOOD BUSINESS PRACTICE and injuries cost money

    • magiting78

      They want to really show that there was a budget deficit, even PPE they can’t afford to provide the workers…lol.

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