The government posted a record budget surplus of P36.8 billion in April which, according to economic managers, can be attributed to key reforms in tax administration and the budgeting process.
Data from the Bureau of the Treasury (BTr) show that the fiscal performance during tax season brought down the cumulative deficit in the first four months of 2013 to P29.7 billion from P66.5 billion as of the end of March.
The January to April deficit was more than 10 times the P2.9 billion recorded in the same period last year, but it is within the government’s deficit cap of P41 billion for the period, according to the BTr.
Expenses in January to April reached P584 billion, up 13 percent from P517 billion a year ago. Spending in the period accounted for 62 percent of the P945.7 billion programmed for the first semester.
“The reforms that the Aquino administration embedded in the 2013 national budget helped us ensure faster and more focused government spending,” Budget Secretary Florencio B. Abad said in a statement.
Abad was referring to “new budgeting regimes that have been introduced” such as the one-year validity of all appropriations, the policy against lump sum funds, procurement improvements that paved the way for the early bidding of projects.
On the other hand, four-month revenues reached P554.3 billion, up 8 percent year-on-year from P514.2 billion. Inflows were also 65 percent of the target for that period.
The government’s fiscal performance during the first four months of the year “reflects the fruit of our redoubled tax collection efforts, as our April tax collections post an impressive year-on-year increase,” Finance Secretary Cesar V. Purisima said in a separate statement.
Purisima said that in April alone, revenue collection reached P190 billion, up 24 percent year-on-year. The Bureau of Internal Revenue, the government’s biggest revenue-earner, was able to collect P149 billion—2 percent or P3.1 billion above target.
From January to April, the BIR contributed revenue of P393 billion, jumping 14 percent year-on-year and accounting for 63 percent of the target for the first half.
The BOC chipped in P96 billion, inching up by 1 percent over the year and representing 59 percent of the first-semester goal.
The BTr turned in P31.2 billion, down 26 percent year-on-year but just P400 million shy of the target for the first half.
Other government offices contributed a total of P34.2 billion, 6 percent better than year-ago level and already three-fourths of the goal for the first six months.
“We look forward to sustaining these gains by continuing our campaign for tax compliance, especially now as we prosecute several high-profile smuggling and tax evasion cases,” Purisima said.
“Additionally, the antismuggling measures we have put in place through revenue regulations, coupled with our data-guided strategy to arrive at a broader, more accurate tax base, should have a further positive impact on revenues for the rest of this year,” he added.