MANILA, Philippines — The government would likely stay in a fiscal deficit this full year despite posting a budget surplus in the first two months, Finance Secretary Ralph Recto said, adding that the state would stick to its borrowing plan to fund the shortfall.
“For me, for as long as we hit our targets, our revenue targets and our expenditure targets, I don’t expect a surplus by the end of the year,” Recto told reporters on Tuesday.
READ: Gov’t posted P88-B budget surplus in January
“I’m just stating a fact. There is a surplus in January; there is a surplus in February. So far, the revenue seems to be good. I hope that holds all the way up to the end of the year,” he added.
Gov’t borrowings
Latest data from the Bureau of the Treasury (BTr) showed a budget surplus of P88 billion in January, a turnaround from the P401-billion deficit recorded in December 2023.
A budget surplus happens when revenue collections outpace government spending, while a deficit indicates the reverse. Figures showed that the January outturn was almost double the P45.7-billion surplus recorded a year ago.
READ: Significant increase in PH gov’t borrowings seen in 2024 — S&P
Dissecting the latest cash operations report of the BTr, total revenues in January amounted to P421.8 billion, up by 21.15 percent. On the expenditures side, the government spent a total of P333.9 billion, jumping by 10.39 percent.
The Marcos administration is planning to borrow a total of P2.46 trillion from creditors at home and abroad this 2024 to help bridge its budget deficit, which is projected to hit P1.4 trillion this year. —Ian Nicolas P. Cigaral