Nat'l gov't budget gap widens in November as public spending rebounds

The national government’s fiscal balance posted a wider shortfall in November as public spending accelerated during the period, the Bureau of the Treasury (BTr) reported Wednesday.

Data released by the Treasury showed the budget deficit last month stood at P128.3 billion, wider by 110.7% from P60.9 billion in the same period last year.

The budget deficit climbed “as public spending rebounded by 2.30% while government collection dropped by 19.35%.”

Year-to-date, the budget shortfall amounted to P1.069 trillion, 161.25% higher than the P409.1-billion fiscal gap in the same period in 2019.

Expenditures

The national government’s disbursements grew 2.30% year-on-year to P374.1 billion “on account of the subsidy releases to the Landbank for the implementation of the Unconditional Cash Transfer Program, to the Philippine Health Insurance Corp. for the National Health Insurance Program, as well as equity to government financial institutions for their COVID-19 assistance or lending programs in line with the implementation of RA 11494 or the Bayanihan to Recover as One Act.”

January to November spending totaled P3.686 trillion, up 11.59% or P382.9 billion on the back of various COVID-19-related financial assistance and recovery measures.

Revenues

The government’s revenue collections in November amounted to P245.8 billion, down P19.35% or P59 billion year-on-year.

The lion’s share or 95% of revenue during the period was raised through taxes, while the remaining 4% or P9.9 billion was generated from non-tax collections.

Year-to-date revenue stood at P2.617 trillion, down 9.56% from P2.894 trillion during the January to November 2019 period.

In particular, the Bureau of Internal Revenue collected P191.7 billion in November, down 17.4% from P232.1 billion a year earlier. Cumulative tax collections by the BIR totaled P1.787 trillion, down 11.19% from P2.012 trillion in the same period last year.

The Bureau of Customs collected P43.7 billion, down 13.29% from P50.4 billion a year earlier. Year-to-date, Customs collection fell 14.84% to P492.3 billion from P578.1 billion last year.

Income from the BTr amounted to P2.8 billion in November, down by 48.61% from the previous year “owing to lower national government share in PAGCOR (Philippine Amusement and Gaming Corp.) income and Bond Sinking Fund (BSF) investment earnings.”

However, year-to-date Treasury income significantly improved by 56.85% or P76.6 billion year-on-year to P211.3 billion “driven by higher dividends and other government service income as well as interest on advances from GOCCs.”

Revenue collection from other offices or other non-tax revenues, including privatization proceeds and fees and charges, slumped by 52.66% year-on-year to P7.1 billion in November “due to restrictions in national government collecting operations caused by the pandemic.”

Cumulative revenue from January to November amounted to P111.7 billion, down 24.12% from P147.2 billion year-on-year. —KBK, GMA News