Budget gap in 5 months at only P9.5B due to low gov’t spending
STEPPING UP. Government spending will continue to pick up after slow spending on projects that had been reviewed and which resulted in a budget deficit of just P9.54 billion during the first five months. INQUIRER/MARIANNE BERMUDEZ
Government spending in May went over the budget by P9.6 billion, just about a third of the P30.26-billion overspending posted in the same month last year.
This brought the budget deficit for the five months to P9.54 billion, just 6 percent of the P162.1 billion recorded in the same period of 2010.
Budget Secretary Florencio B. Abad said on Wednesday the numbers showed that government spending has picked up and would continue to do so during the remaining months of the year.
Abad said the improvement was seen not only in the flow of cash but also in the quality of public goods and services delivered.
“After government agencies have conducted a thorough review of the costs and efficiencies of their programs and projects, they are now ready to spend with much impact,” Abad said.
January-May expenses reached P591 billion, or 10.7-percent less than the P662.1 billion incurred in the same period of 2010.
Commenting on the year-on-year decrease in spending from January to May, Abad said the previous period was beyond normal considering that it was the height of election-related spending.
The budget chief said that despite faster allotment releases, contractions in cash disbursements compared with last year’s level persisted due to slower implementation of projects.
This resulted in lesser demand for payments from the government for the delivery of goods and services, Abad explained.
Revenues for the first five months reached P581.5 billion, or 16.3 percent higher than last year’s P500 billion.
The Bureau of Internal Revenue contributed P391.1 billion, up 13.7 percent from year-ago collections of P344.1 billion. The Bureau of Customs chipped in P106.9 billion, down 0.5 percent year on year from P107.5 billion. The Bureau of the Treasury turned in P48.5 billion, which was 124.3 percent more than the P21.6 billion earned a year ago. Other government offices raised P35 billion, up 30.6 percent year on year from P26.8 billion.
