Gov’t swings back to budget deficit in February on infra spending

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MANILA, Philippines – The national government incurred a budget deficit of P103.1 billion in the first two months, up 34.35 percent, as spending for infrastructure, health care and social development accelerated in February.

For February alone, the government swung back to a deficit amounting to P171.4 billion from the P68.3- billion surplus in January.

Both revenue collections and expenditures maintained double-digit annual growth in the January to February period. As such, the government was “on track to hit fiscal targets for the year,” the Bureau of Treasury reported on Wednesday.

Excluding interest payments from expenditures, cumulative primary balance remained at a surplus of P49.8 billion, improving by 9.88 percent.

Revenues up 12.64%

Two-month revenues rose by 11.32 percent to P718.9 billion, as tax collection gained 12.64 percent to P671.9 billion.

The Bureau of Internal Revenue (BIR) alone collected P514.7 billion in the first two months, up 15.31 percent. The growth was mostly driven by receipts from value added tax, followed by corporate income tax, personal income tax, withholding tax on government securities and documentary stamp tax.

“The BIR’s continued progress in revenue performance is credited to its ongoing improvements in tax payment systems and collection efficiency,” the BTr said.

Source: Bureau of the Treasury

Expenditures up 13.76%

On the other hand, two-month government expenditures accelerated by 13.76 percent to P822 billion.

For February alone, government disbursements grew by 8.88 percent to P423.2 billion.

“The expansion was credited to higher capital expenditures of the Department of Public Works and Highways, particularly from progress billings and payment of right-of-way acquisition for
its various infrastructure projects,” the BTR said.

“Higher disbursements recorded in the Department of Health and Department of Social Welfare and Development for their banner health and protectives services programs, respectively, also contributed to the growth of February disbursements,” it added. – Doris Dumlao-Abadilla