The government posted a budget surplus in August as revenue collection grew by a much faster pace than expenditures.
The government posted a budget surplus in August as revenue collection grew by a much faster pace than expenditures.
The surplus for August amounted to P21.9 billion, over eight times the P2.5 billion surplus registered in the same month last year, the Department of Finance reported Tuesday.
Revenues for the month reached P155.1 billion, jumping by 20 percent from that of a year ago. On the other hand, expenditures amounted to P133.2 billion, marking a 5-percent rise year on year.
Finance Secretary Cesar Purisima said the substantial increase in revenue collection could be attributed to various administrative measures, including those meant to curb tax evasion.
“We have proven that good governance has had a dramatic effect in restoring stability to the coffers of the government,” Purisima said in a statement.
On expenditures, the year-on-year increase in August came about just as the government exerted more effort to sustain the robust growth of the economy.
After the government missed the targeted amount of spending for the first semester, the Department of Budget and Management has since ordered concerned agencies to speed up the disbursement of funds for approved projects and programs.
The directive is meant to boost expenditures for the full year to as close to the ceiling as possible, the DBM explained.
Budget Secretary Florencio Abad earlier said that spending started to pick up at the start of the second half. He said the government could still afford to spend much more.
From January to August, the budget deficit stood at P82.6 billion. The figure is 16 percent higher year on year. But the government still has ample room to spend more in the remaining months of the year.
With the latest cumulative deficit, the government at the most may incur a budget gap of P155.4 billion from September to December. The figure is still within the ceiling of P238 billion set for the year.
Total revenues in the first eight months amounted to P1.14 trillion—up by 12 percent year on year.
Expenditures for the same period stood at P1.22 trillon, up year on year by 13 percent.
Under the 2013 fiscal program, the government must collect at least P1.535 trillion in revenue and spend a maximum of P1.984 trillion.
This means that the budget deficit should not be more than P238 billion, equivalent to 2 percent of the targeted gross domestic product for the year.