5-month budget gap eases to P63.6B

The national government posted a deficit of P33.4 billion last May, which was nearly double the P17.7 billion spent over the budget in the same month of 2016.

According to the Bureau of the Treasury, this brought the January-May deficit to P63.6 billion, down by 15 percent year-on-year from P75.1 billion a year ago.

In the five months to May, revenues reached P996.6 billion, an increase of 8 percent year-on-year.

The Bureau of Internal Revenue (BIR) contributed P716.8 billion, which was 9 percent higher year-on-year. The Bureau of Customs (BoC) contributed P174.9 billion, which was 13-percent better than last year’s collection.

The Treasury turned in P48 billion, a decrease of 18 percent than the year-ago level.

“The decline [in Treasury revenues] in January-May was mainly due to lower dividend collections by P9.1 billion,” the agency explained.

On the other hand, five-month expenses amounted to P1.06 trillion, up 6 percent year-on-year.

In May alone, revenues P228.3 billion, an increase of 14 percent from P199.8 billion last year.

BIR collections rose 5 percent to P158.7 billion while those of the Customs jumped by 23 percent to P39.6 billion. The Treasury’s contribution for May surged 124 percent to P18 billion.

“Bulk of revenue growth for the month of May can be attributed to non-tax revenues, particularly from the [Treasury’s] income, which also rebounded from the previous month’s contraction,” the agency said.

National government “disbursements were 20 percent or P44.3 billion higher than in May 2016 and amounted to P261.7 billion,” the Treasury said.

“Interest payments for the month amounted to P21 billion, up 12 percent year-on-year due to timing of payment for treasury bonds scheduled in April but paid in May,” it added. “The year-to-date [interest payments of] P132.3 billion is equivalent to 12.5 percent of expenditures.”

During the month of April, government spending and revenue collections declined, resulting in a narrower budget surplus of P52.8 billion. April has historically generated a surplus for the government as the deadline for the filing of income taxes falls within the month,” according to the Treasury.

The surplus in April was lower than the P55 billion posted a year ago. Last April, government expenditures declined 4 percent to P183.1 billion from P191.6 billion during the same month last year. Interest payments, which accounted for 7 percent of total expenditures, declined by 9 percent to P13.5 billion from P14.8 billion as payments falling due at end-April were moved to May due to official holidays.