Govt likely incurred P112-B deficit in Q1 — DOF

The national government may have incurred a P112-billion budget deficit in January-March because of a slower revenue stream, according to preliminary data released Wednesday by the Department of Finance (DOF). Revenues will likely total P319 billion against expenditures amounting to P431 billion, DOF records showed. The Bureau of Internal Revenue (BIR) and the Bureau of Customs are expected to raise P197 billion and P63 billion, respectively, with the Bureau of the Treasury and other government offices contributing P59 billion. The department also said the deficit is expected to narrow down to P40 billion in the second quarter, widen to P82 billion in the third quarter, and narrow down again to P66 billion in the last quarter. The government has its fingers crossed that the deficit will not breach P300 billion or 3.2 percent of the gross domestic product (GDP). The Philippines incurred a budget deficit of P314.4 billion or 3.7 percent of GDP last year, compared with a P325-billion ceiling equivalent to 3.9 percent of GDP. For the second quarter, the government expects revenues of P367 billion and expenditures of P407 billion, the DOF said. The BIR and Customs have been tasked to collect P263 billion and P79 billion, respectively. The DOF said that revenues for the third quarter are likely to reach P354 billion with expenditures of P437 billion. The BIR is expected to collect P234 billion and the Customs is expected to generate P87 billion. For the last quarter, the government has targeted revenues of P370 billion and expenditures of P436 billion, assuming that the BIR will be able to collect P246 billion and Customs P66 billion. Latest data showed that the government posted a P13.4-billion budget surplus in January, reversing a P37.1-billion deficit in the same 2009 period. In January revenues reached P135.9 billion and expenditures totaled P122.5 billion, DOF records showed. — JE/VS, GMA News