October deficit capped by underspending

The Department of Finance has reported that the budget deficit for the first 10 months of the year was only P74.25 billion, barely a quarter of the P300 billion intended spending in excess of the national budget this year.

The national government posted a budget deficit of P21.26 billion in October amid continued growth in revenues, while a belated push in expenses started to kick in.

October spending brought the budget deficit for the first 10 months of the year to P74.25 billion, barely a quarter of the P300 billion intended spending in excess of the national budget this year.

The 10-month deficit was also just 27.5 percent of the P270.3 billion recorded in the same period of 2010.

January-October expenses reached P1.2 trillion, or 68.6 percent, of the planned 1.84 trillion. It was also 5.4 percent less than the P1.26 trillion incurred in the same period last year.

On the other hand, 10-month revenues reached a total of 1. 12 trillion, or 12.9 percent higher than last year’s P993.2 billion.

In October alone, expenditures reached P125.2 billion, 3.8 percent less than the spending goal but 14.8 percent higher year on year.

Last month’s revenues reached P103.9 billion, an increase of 5.5 percent from P98.5 billion.

“Revenue collections continue to improve as government expenditures were ramped up to boost growth and shield the Philippine economy from the present global uncertainties,” Finance Secretary Cesar V. Purisima said in a statement.

“Netting out interest payments, the government continued to operate under a primary surplus of P160.896 billion from January to October, a turnaround from last year’s P11.768-billion primary deficit,” Purisima added.

From January to October, the Bureau of Internal Revenue contributed revenues of P756.76 billion, up by 12.8 percent from year-ago collections pegged at P670.9 billion.

The Bureau of Customs chipped in P217.45 billion, up 1.8 percent from P213.53 billion last year.

Also, the Bureau of the Treasury turned in P71.19 billion, which was 49.5 percent more than the P47.62 billion earned previously.

Other government offices yielded P75.62 billion, rising by 23.6 percent year on year from P61.17 billion.

“The Aquino administration’s serious and consistent implementation of tax administrative measures coupled with quality spending is continuously delivering results,” Purisima said.

“Moving forward, we are committed to further improve on our efforts to drive the positive fiscal momentum,” he added.