National gov't fiscal gap widens 66.3% to P23.4B in January

The national government’s fiscal performance in the first month of the year stood at a deficit as growth in state spending surpassed gains in revenue collections, data released Thursday by the Bureau of the Treasury (BTr) show.

Treasury data indicate that the government posted a budget deficit of P23.4 billion in January, 66.30% wider than the P14.1-billion shortfall seen in the same month last year.

“The fiscal performance for the period reflects a 9.70% growth in public expenditures alongside a 6.65% increase in revenue collection,” the BTr said.

Expenditures

In particular, government’s expenditures in the first month of 2022 totaled P301.5 billion, up 9.70% from P274.8 billion year-on-year, “partly due to higher National Tax Allocation (NTA) releases.”

According to the Treasury, 78% or P235.9 billion of the total state spending in January were primary expenditures, which grew by 3.57% over last year’s P227.8 billion level.

Interest payments, on the other hand, amounted to P65.6 billion, up 39.40% from P47 billion year-on-year.

Interest payments accounted for 23.57% of revenues and 21.74% of expenditures, up last year’s 18.04% and 17.11%, respectively, according to the Treasury.

National government posts P23.4 billion budget deficit in January 2022, 66.3% wider than the fiscal gap of P14.1 billion seen in January 2021, data from the Bureau of the Treasury showed. pic.twitter.com/2USuJd29gl

— Ted Cordero (@Ted_Cordero) March 17, 2022

Revenues

Meanwhile, the government’s revenue collections reached P278.1 billion in January this year, 6.65% higher than the P260.7-billion collected in January 2021.

Also, the BTr said the bulk of the total or 92% was from taxes amounting to P255.3 billion while non tax collections of P22.8 billion made up the remaining balance.

Collections by the Bureau of Internal Revenue (BIR) in January stood at P195.8 billion, up 7.48% or P13.6 billion better against the P182.2 billion actual collections made in January of last year.

Likewise, the Bureau of Customs (BOC) collected P58.3 billion, improved by 23.43% or P11.1 billion from P47.3 billion posted in the same period a year ago.

Income collected and generated by the BTr stood at P10.9 billion, declining by 41.75% or P7.8 billion year-on-year.

“The contraction was attributed to the high base effect of dividend remittances of the National Transmission Corporation (TRANSCO) and PAGCOR in January 2021, which remitted P8.3 billion and P1.0 billion, respectively,” it said.

January collections from other offices or other non-tax collection including privatization proceeds and fees and charges amounted to P11.9 billion was 7.96% above last year’s outturn of P11.0 billion. —LBG, GMA News