Gov’t fiscal balance shows wider deficit of P215.5B in June

The Philippine government posted a wider fiscal shortfall in June as state spending exceeded revenues during the period, data released by the Bureau of the Treasury (BTr) on Tuesday showed.

The national government's fiscal performance saw a deficit of P215.5 billion, up 43.81% year-on-year and wider than the P146.8-billion budget gap seen in May.

“The June outturn was driven by the 27.91% growth in expenditures which outpaced the 18.20% increase in government receipts,” the Treasury said.

Year-to-date, the budget deficit stood at P674.2 billion, 5.84% narrower compared to the P716.1-billion shortfall in the first half of 2021 and lower by 18.64% than the programmed P828.7-billion deficit for the period.

Expenditures

Government spending in June stood at P505.8 billion, up 27.91% from P395.4 billion last year.

The Treasury attributed the higher spending to "higher capital outlay disbursements for road and transport infrastructure programs of the Department of Public Works and Highways (DPWH) and Department of Transportation (DOTr), respectively, and projects under the Revised Armed Forces of the Philippines Modernization Program (RAFPMP) of the Department of National Defense (DND).”

“Spending, likewise, grew on the back of the implementation of various social protection programs of the Department of Social Welfare and Development (DSWD), the release of the P10.0 billion Coco Levy Fund, and higher personnel services expenditures,” the Treasury said.

January to June spending stood at P2.401 trillion, up 8.85% from P2.206 trillion year-on-year.

The amount, however, was lower by 3.04% than the P2.477-trillion target for the period.

The BTr said this “can be largely attributed to the slower-than-expected capital expenditures amid the election ban in late March up to early May, as well as the timing of release for the special shares of LGUs (local government units) in the proceeds of national taxes to July.”

Sought for comment, Finance Secretary Benjamin Diokno told reporters that the Marcos administration will have a “catch-up plan” on spending for the rest of the year.

Revenues

State collections during the period amounted to P290.3 billion, up 18.20% from P245.6 billion last year.

This brought the year-to-date revenues to P1.727 trillion, up 15.91% from P1.49 trillion in the same period last year.

The first-half collection performance exceeded the target of P1.648 trillion by 4.8%.

The Treasury said tax revenues made up 89% or P1.541 trillion of the total revenues while non-tax collections accounted for the remaining 11% or P186.3 billion.

In particular, the Bureau of Internal Revenue’s (BIR) collection for the month stood at P173.5 billion, up 8.9% from P159.4 billion in the same month last year.

The BIR’s collection stood at P1.132 trillion in the first six months of 2022, up 9.76% from P1.03 trillion last year.

The Bureau of Customs (BOC), meanwhile, recorded a new high for the year in reaching year-on-year growth at 46.07% or P24.0 billion with P76.2 billion collected for June 2022.

“This also marked 17 straight months of positive growth, which averaged 31.33% for the first half of 2022,” the Treasury said.

Customs’ year-to-date revenues stood at P396.7 billion, exceeding both the mid-year program and the previous year’s outturn by 9.98% and 31.47%, respectively.

The Treasury attributed the gains to anti-smuggling measures, including the fuel marking program, which were further boosted by elevated oil prices and peso depreciation.

The amount of income collected and generated by the BTr for the month was on par with last year’s P20.8 billion.

The Treasury’s first-semester collection of P104.1 billion surpassed the previous year’s achievement for the same period by 27.54% or P22.5 billion and is almost double the year-to-date program of P52.8 billion.

Revenue collections from other offices or other non-tax, including privatization proceeds and fees and charges, for June reached P18.6 billion, up 68.21% year-on-year.

The total collection of P82.2 billion as of end-June 2022 likewise represented a 25.98% or P17.0 billion increment over the 2021 comparable figure and was 43.68% better than the six-month program of P57.2 billion, according to the Treasury. —VBL, GMA News