2011 budget gap hits only P197.8B
The Bureau of Internal Revenue (BIR), the government's tax revenue collection agency, chipped in P265.1 billion to government coffers in 2011, up by 2.3 percent year on year but 17.2 percent, or P54.9 billion, less than the goal. The government’s budget deficit in 2011 was P197.8 billion, or less than two thirds of the previous year’s level and this year’s target ceiling of P300 billion. AFP PHOTO/ROMEO GACAD
The government’s budget deficit settled at P197.8 billion in 2011, or less than two thirds of the previous year’s level and this year’s target ceiling.
In 2010, the government spent P314.5 billion over the national budget. This year, the plan is to overspend as much as P300 billion.
Full-year expenses reached P1.58 trillion, or 2.3-percent higher than the P1.52 trillion incurred in the previous year. However, this was 9 percent, or P153.6 billion, short of the P1.71-trillion target for 2011.
On the other hand, revenues in 2011 reached P1.36 trillion, or 12.6 percent higher than last year’s P1.21 trillion. This was, however, 3.6 percent short of the target.
In December alone, expenditures reached P211.7 billion, or 43.2 percent higher than the P147.8 billion spent in the same month of 2010.
Article continues after this advertisement“Government disbursements showed a strong finish last year because the Aquino administration intervened to speed up spending and to catch up on the slack during the earlier parts of 2011,” Budget Secretary Florencio B. Abad said in a briefing.
Article continues after this advertisement“The disbursement acceleration plan worked,” Abad said, adding that December spending was an all-time high for a single month.
Also, December revenues reached P110.2 billion, an increase of 6.8 percent year on year from P103.2 billion.
Finance Secretary Cesar V. Purisima said in a statement that revenue gains were achieved mainly through tax administration efficiency.
According to the Bureau of the Treasury, the 2011 deficit represented 2 percent of gross domestic product, which was better than the target of 3.2 percent of GDP.
“Coupled with a sustainable macroeconomic stability and good external payments position, the Philippines’ sound fiscal position bodes well for the country’s bid for higher credit ratings,” Purisima said.
Last year, the Bureau of Internal Revenue contributed revenues of P924.1 billion, higher by 12.3 percent from the previous year’s collections but 1.7 percent, or P15.9 billion, short of the target.
The Bureau of Customs chipped in P265.1 billion, up by 2.3 percent year on year but 17.2 percent, or P54.9 billion, less than the goal.
Also, the Bureau of Treasury turned in P75.2 billion, which was 38.5 percent better than the previous year and P5.24 billion more than the plan.
