Government likely breached budget deficit target of P145.1 billion in first half

MANILA, Philippines - The government likely breached its first half budget deficit target of P145.1 billion, bequeathing to the incoming administration a problematic fiscal situation.

A source said that the government likely breached the six-month deficit ceiling because of higher spending and the failure to sell state-owned assets as planned.

These include the 103-hectare Food Terminal Inc. agro-industrial property in Taguig (P7 to P9 billion); government stake in Philippine National Oil Company-Exploration Corp. (P17 billion); and the P3-billion lease and development contract for its real estate property in Fujimi, Japan. 

Finance Secretary Margarito Teves is expected to announce today (Tuesday) the fiscal position of the government as of end-May.

A source said that because of higher spending related to infrastructure and election-related activities, the government has already breached the six-month ceiling even with still two weeks to go before the end of June.

In April, the National Government posted a budget surplus of P2.6 billion, smaller than the P7.9-billion surplus posted in the same month last year but a marked improvement compared to the monthly deficits incurred since the start of the year. During the month, revenues reached P124.5 billion while expenditures amounted to P121.9 billion.

The January to April budget position, meanwhile, stood at a budget deficit of P131.6 billion, higher than the deficit in the same period last year of P111.8 billion.

From January to April, meanwhile, total revenues reached P390.3 billion or 10.9 percent higher compared to revenues in the same period last year.

Expenditures, on the other hand, reached P521.9 billion in the first four months or 12.5 percent higher compared to year-ago figures.

The government has been trying to contain the deficit but the need to spend more continues to put pressure on its fiscal position.