P90-B deficit posted in June on spending jump, says Budget chief

Government spending on public goods and services jumped by a fifth in June, bringing the budget deficit that month to nearly P90 billion, Budget Secretary Benjamin E. Diokno said.

On the sidelines of a forum Friday, Diokno said government expenditure rose by “almost 20 percent” year-on-year last month, bringing disbursements up by “almost 10 percent” from January to June period, without disclosing the actual figures.

The Bureau of the Treasury will release the national government’s cash operations report containing the June budget balance figure today.

But Diokno said revenue collections in June were “slightly behind” target.

As the double-digit growth in expenditures outpaced that of revenue collection, the government posted a budget deficit of “almost P90 billion” last month, Diokno said.

The nominal fiscal deficit reached “almost P154 billion” as of the end of June, he added.

Based on the government’s fiscal program, the budget deficit must hit P143.8 billion at the end of the first half.

By the end of 2017, the government targets a P482.1-billion budget deficit or 3 percent of gross domestic product, as disbursements of P2.909 trillion had been programmed to outpace the P2.427-trillion revenue collection goal.

By yearend, expenditures must grow by 14.1 percent from P2.549 trillion last year, while revenue should rise by 10.5 percent from P2.196 trillion in 2016.

The Duterte administration’s wider 3-percent deficit program for the medium term was in line with plans to ramp up government spending, especially on infrastructure, to sustain strong economic growth.—BEN O. DE VERA