Budget deficit widens in February

CLARKFIELD, Pampanga (via Wi-Tribe), Philippines – The government likely posted a higher budget deficit in February, Budget Secretary Florencio Abad said on Saturday.

 “It will be substantially higher than (the January 2012 deficit of) P16 billion,” Abad said in a business journalism seminar organized by the Economic Journalists Association of the Philippines and San Miguel Corp.

While he declined to provide a clearer estimate, the Budget chief said based on the infrastructure projects that have already been bid out, it would be safe to say that the February budget gap is wider than the January deficit of P15.9 billion.

The January deficit reversed the P13.424-billion surplus recorded in the same period last year.

Revenue collections reached P126.4 billion for the month while disbursements reached P142.3 billion during the period.

The government has been trying to spend more to pump-prime the economy following the slower-than-expected growth recorded last year.

The economy, as measured by gross domestic product (GDP), grew by only 3.7 percent last year, significantly slower than the 7.6-percent GDP growth recorded in 2010.

In January, the government’s expenditure performance rose to P142.3 billion in January 2012, a 16.2-percent increase from the P122.5-billion reported in the same period last year, Abad said in a separate report on January expenditures.

In a separate report on expenditures, Abad said the current expenditure rate runs counter to the previous years’ trends, where January spending usually registers at a much slower pace.

Of the amount disbursed in January, capital outlay amounted to P11.5 billion, up by P800 million for the month of January.

 “These expenses supported the early releases for various infrastructure-oriented items, including irrigation facilities under the Irrigation Development Plan and postharvest facilities under the Department of Agriculture’s Food Staples Self-Sufficiency Plan,” Abad said.

Revenue collections, on the other hand, amounted to P126.4 billion for February, lower than the P135.9 billion a month ago.