Gov’t budget gap declines by more than half

Expenditure grew rapidly, but tax take rose even faster

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Finance Secretary Cesar V. Purisima

The government reduced its budget deficit by more than half in October after it stepped up collection of taxes and import duties to boost the state’s coffers, the Department of Finance said.

 

Finance officials also said the government did not even have to undertake massive expenditure cuts to significantly reduce the budget gap.

 

DOF data showed that the budget deficit for the month amounted to P9.67 billion—down by nearly 55 percent from the P21.26 billion reported in the same month last year.

 

Finance Secretary Cesar V. Purisima said increased revenue collection allowed the government to spend more on anti-poverty projects and programs without causing the deficit to balloon.

 

He said the Aquino administration is bent on attaining “inclusive growth”—where growth of the economy could be translated into poverty reduction, while the deficit remained within manageable levels.

 

“While the current fiscal space continues to be an opportunity for the judicious use of public funds for projects of high and inclusive growth, the finance department continues to push for revenue-generating reforms that will allow for sustainable and resilient fiscal consolidation,” Purisima said.

 

The government spent about P144 billion in October—up by 15 percent from 125.2 billion in the same month last year.

 

While expenditures grew rapidly during the period, the DOF said the increase in revenue collection was even faster. Revenue collected during the month reached P134.32 billion—up by 29 percent from P104 billion.

 

The DOF said the increase in revenue collection was largely due to higher taxes collected by the Bureau of Internal Revenue and the increase in import duties collected by the Bureau of Customs.

 

But from January to October, the government registered a significant increase in the cumulative budget deficit. The finance department, however, said the increase was well within the official fiscal program of the government for this year.

 

The government intended to increase spending for infrastructure and social services this year. Thus, it was expected to post a higher full-year deficit in 2012 compared with that recorded last year.

 

The deficit for the first 10 months amounted to P115.74 billion, rising by about 56 percent from P74.25 billion in the same period last year.

 

This came about as revenues reached P1.25 billion, while expenditures amounted to P1.37 billion.

 

Revenues marked a year-on-year increase of  about 12 percent, while expenditures rose by nearly 15 percent.

 

According to Purisima, the deficit as of October indicated that the full-year figure could stay well below the official ceiling of P279 billion.

 

Last year, the deficit stood at P197.8 billion.

 

Officials said the government intended to spend much more this year than last year, thus registering a higher deficit. This will enable the domestic economy to maintain a decent pace of growth even as the global economy stumbles.

 

Boosting domestic spending is needed, they said, to counter the drag caused by weaker export earnings on the country’s economic growth.

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  • regd

    Dapat lang, andaming pera ng gobyerno. Sa LTFRB collection pa lang ma-dismaya ka na. Kahit brand new cars ipa smoke-belching test pa? Di ko pa sinali ang tourism tax sa bawat lumalabas ng bansa P1,620 na napakasakit at napakawalang kwentang buwis!

  • pilipino

    That’s quite an improvement, I pray this will be the trend so that ultimately we can balance our budget (Expenses = Collections) or even attain a budget surplus in the coming years (Expenses < Collections). Keep it up guys. Fly high and God bless the PHILIPPINES!

    • kismaytami

      You’re doing the formula in layman’s way, which is not the government’s way. Collections – Kupit = Expenses. Go figure…

      • Iggy Ramirez

        Expenses + kupit = ((Collections – kupit)/(1 – 0.2*kupit))^sqrt(2*(kupit +1))

  • kismaytami

    Yayaman talaga ang gobyerno pati mga nagtatrabaho sa gobyerno, eh biruin mo ba naman dito Dasma Cavite, photocopied form ng mayor’s permit para sa mga job applicant eh 100 pesos, walang resibo!

    • pilipino

      Pakikunan ng video at isumbong nyo. Post the video In Youtube.

      • Jeanne Thompson

        @kismaytami Ibig sabihin corrupt ang mga tauhan ni Barzaga? So anong gagawin mo? Ilalabas mo na lang ba ang galit at ngitngit mo dito? Alam mo palang may nangyayaring ganyan eh bakit ayaw mong gumawa ng paraan?

        Kung wala kang ibang gagawin kundi magreklamo dito ay para mo na ring kinunsinte ang ginagawang masama nga mga local na empleyado ng gobyerno dyan.

      • kismaytami

        You mean gagastos na naman ako ng P100 plus wasted time just to get these culprits? Baka ikaw may pera ka at extrang oras, ikaw na lang.

      • Jeanne Thompson

        Puro dada ka lang. Kung ganyan ang dahilan mo eh magdusa ka na lang lagi.

        Gagawan ko ng paraan yan KUNG dyan ako nakatira. Sorry hinde ako nakatira sa Dasma, Cavite hahaha. Matino ang local government dito sa place na tinitirahan ko.

      • kismaytami

        Nice idea. Why don’t you try?

  • http://www.facebook.com/profile.php?id=100003516764413 Jean Claude

    Iba talaga kapag hindi kurakot ang presidente. 

  • goavan

    Title:  Govt’ budget gap declines by more than half (This is only for the month of October 2012) but the Jan. – Oct. budget deficit widens by 56% (more than half, too) equivalent to P116B.  I think it is important to highlight the Jan. – Oct. data rather than the Oct. data alone!!!  Because the former creates an impression that the gov’t is doing good lowering down the budget deficit but its not.

    • http://www.facebook.com/profile.php?id=100003516764413 Jean Claude

      you are wrong. the government has in fact lowered the budget deficit – the budget deficit target was 260 billion for 2012… it’s already december nasa 116 billion lang. 260 minus 116 = 144 billion pesos ang natipid ng gobyerno this year.

      • goavan

        read Philstar: Gov’t incurs P9.674B Def. in Oct….quote: according to purisima…Jan. to Oct. deficit of P1.6B was wider than the P 74B recorded a year ago or an increase of 55.9%  the comparison should be apple to apple…I was talking about actual data for 2011 vs. 2012 not projected data for 2012.  sino ang wrong ngayon?  your answer is as good as mine.

      • http://www.facebook.com/profile.php?id=100003516764413 Jean Claude

        you cant compare 2011 and 2012 because, in 2011, the government actually did NOT spend much. It’s like an artificial austerity. The government only started using its stimulus power this year thats why the GDP for the first quarter was 6.1 percent. now the GDP increased 7.1 percent…

      • ramelatilano

        Tama ka pare  si goavan ay grupo yan ni Glorya…ha ha ha just want to make issues.  ang totoo sa tagal ng pamamalagi nila sa gobyerno …..dapat ay gumawa na sla noon ng maganda upang sana ay lumago naman tayo ng husto..sa asya… 

      • goavan

        pakialam ko kay gma….ang ibig mong sabihin kahit nong panahon pa ni limahong???

      • goavan

        need i say anything more…you are simply diverting the issue because you said I was wrong and now you are trying to make palusot…aminin!!!   figures don’t lie!!!

    • Matambaka

       NuyTurdz….Does NOT LIKE this…ewwwwwww

    • latino_boom

      Nahhh you are just one of the those Filipinos who have this Crab Mentality… you are not looking for positive news but you are always on the negative side…and pity you coz you live your life looking for mistakes rather than living on positive…well i guess you’re gonna die like that…Pity what a pity

      • goavan

        please don’t pity me cause i’m good, life is good…you may want to pity yourself…long live your Pnoy!!!  instead na “boom” baka mabusted ka.  I was only criticizing how the article was written kung ano-ano na sinabi mo!!!  thinkers are doers yan ikaw.  what a pity

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