The government posted a budget deficit of P39.2 billion in July as expenses and revenues continued to grow by a double-digit pace year-on-year.
According to the Bureau of Treasury, this brought the deficit in the first seven months to P73.7 billion—about two-fifths of the P183.3 billion that the government intended to spend on top of the budget in the first nine months.
Also, the seven-month deficit was 68.7 percent more than the P43.7 billion recorded in the same period of 2011. From January to July, expenses reached P958 billion—71 percent of the program for the first three quarters. Still, the figure was 15.1 percent higher year-on-year.
Budget Secretary Florencio B. Abad yesterday said disbursements were “definitely gaining momentum.”
“We can expect the continued acceleration of government spending in the coming months, bolstered by increased activity in project implementation among departments and agencies,” Abad said.
He said infrastructure spending for January to July increased by over 60 percent year-on-year, while maintenance and other operating expenditures rose by more than 30 percent.
Revenue in the first seven months totaled P884.2 billion—76 percent of the goal for the period but 12.1 percent higher than that of a year ago.
In July alone, expenditures reached P162.6 billion. It was 21.8 percent higher than the P133.4 billion of the same month last year. Revenue also reached P123.3 billion, an increase of 15.3 percent from P107 billion.
Finance Secretary Cesar V. Purisima said July was the fifth month this year that the Bureau of Internal Revenue posted double-digit year-on-year gains for monthly collections, while it is the Bureau of Customs’ fourth month.
From January to July, the BIR contributed P604.7 billion—76 percent of the nine-month target. It was also 13.7 percent higher year-on-year. The BoC chipped in P167.8 billion. It was 65 percent of the target, but 12 percent better than last year’s collection.