Higher spending push PHL July deficit wider to P39B

Accelerated spending and higher revenues opened wider the Aquino administration’s budget deficit to P39.249 billion last month, compared to P26.482 billion a year earlier.

 

“This means we have enough fiscal space to pump-prime the economy if we need to. It also means we have flexibility when it comes to our borrowing,” Finance Secretary Cesar Purisima said Thursday.

 

The fiscal position in July reflected more space for pump priming the economy, Purisima noted.

 

“We are well within the program, which is 2.6 percent of GDP,” Purisima added.

 

The deficit in the first seven months reached P73.731 billion, or less than a fourth of the P279 billion ceiling equivalent to 2.6 percent of Philippine output for the year.

 

In January to July 2011, the deficit was recorded at P43.713 billion.

 

Combined revenues of the Bureau of Internal Revenue, Bureau of Customs. Bureau of Treasury and other agencies reached P123.309 billion in July, against expenditures of P162.558 billion, Finance Department data showed.

 

During the seven-month period, revenues totaled P884.230 billion, while expenditures reached P957.961 billion

 

With the latest fiscal results, Purisima said there is no plan to go for a narrower deficit ceiling for the year. — VS, GMA News