Underspending trimmed gov’t H1 budget deficit by 18%

MANILA  -The national government’s budget deficit narrowed by 18.2 percent to P551.7 billion in the first semester from P674.2 billion in the same period last year as expenses were lower than planned, according to the Bureau of the Treasury (BTr).

From January to June, the amount spent beyond revenues was 28.5 percent less than the planned P771.5-billion deficit, itself based on the Marcos administration’s plans to spur continued growth and further development of the domestic economy.

Compared with the actual spending in the same six-month period last year, this year’s level rose by a meager 0.4 percent to P2.41 trillion. Actual spending was 6.6 percent less than the planned P2.58-trillion expenditure.  This happened as finance and budget officials continued to urge national agencies to use their budget more efficiently and avoid underspending.

Six-month revenues increased by 7.7 percent to P1.86 trillion. They were also 2.7 percent higher than the expected intake of P1.81 trillion.

Contributions from the Bureau of Internal Revenue grew by 7.6 percent to P1.2 trillion. However, this was 2.6 percent short of the P1.3-trillion goal for the first half.

On the other hand, the Bureau of Customs (BOC) reported a 9.3-percent increase in six-month earnings at P433.4 billion. This was 3 percent higher than the P420.7-billion target, which the BTr said was driven by the BOC’s antismuggling efforts.

In June alone, the government spent P225.5 billion more than its revenues. The budget gap for that month widened by 4.6 percent.    June revenue collection decreased by 7.9 percent to P267.3 billion from P290.3 billion due to a decline in the earnings of both BIR and BOC.

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