The country’s budget deficit narrowed by 59.24 percent to P54.2 billion in August from P133 billion in the same month last year amid a modest decline in state spending, the Bureau of the Treasury (BTr) reported on Wednesday.
Data showed that total revenues in August increased by 24.40 percent to P386.3 billion, while state expenditures declined by 0.68 percent to P440.5 billion.
A budget deficit happens when the state’s expenses exceed its revenue.
For the first eight months, the budget deficit also went down by 4.86 percent to P697 billion from the P732.5 billion budget gap last year.
“This can be one of the benefits of the fiscal consolidation program of the government, streamlining expenditures vis-a-vis revenues generated,” John Paolo Rivera, senior research fellow at Philippine Institute of Development Studies, told the Inquirer.
Meanwhile, revenues from the Bureau of Internal Revenue (BIR), which historically accounts for 80 percent of state revenues, rose by 11.51 percent to P238.1 billion in August.
This brought its year-to-date collection to P1.92 trillion, up by 12.55 percent from last year. The BIR aims to collect P3.05 trillion for the full year.
The Bureau of Customs (BOC) collected P78.5 billion in August, up by 4.69 percent from P75 billion seen a year ago.
Since the start of the year, BOC’s collections grew by 5.66 percent to P614.4 billion.
Meanwhile, collection by the treasury department more than doubled to P16.5 billion from the P6.3 billion recorded last year.
“The increase was primarily driven by Power Sector Assets and Liabilities Management’s P10-billion settlement of guarantee fee arrears, alongside increased Philippine Amusement and Gaming Corp. income,” the BTr said.
BTr’s income since the start of the year reached P200.3 billion, up by 33.46 percent.