Gov’t incurs P34.854-B budget deficit in Sept

MANILA, Philippines - The government incurred a budget deficit of  P34.854 billion in September, bringing the nine-month total to P106.062 billion, lower than program.

The January to September deficit was 42 percent or P77.281 billion below the government’s programmed deficit ceiling of P183.343 billion for the period.

Finance Secretary Cesar Purisima said the improvement in collections by the country’s tax agencies “generated fiscal space” for government. “Our aggressive efforts to improve tax compliance has consistently generated fiscal space to provide funding for the Aquino administration’s spending priorities,” he said.


As of end-September, the government was able to raise P1.118 trillion in revenues, a 10-percent improvement from the P1.017 trillion it raised in the same period last year.

Expenditures, on the other hand, increased by 14.5 percent to P1.225 trillion from P1.070 trillion in the same period last year.

Both the Bureau of Internal Revenue and the Bureau of Customs showed an improvement in collections.

The BIR collected P71.036 billion in September, 6.7 percent more than last year’s P66.547 billion  while the BOC raked in P23.208 billion or 2.6 percent higher than last year’s P22.408 billion.

In the nine months to September, the BIR’s collections climbed 12.6 percent to P772.468 billion from P686.260 billion a year ago. Similarly, the BOC’s collections increased by 9.8 percent to P213.656 billion from P194.607 billion  last year.

Despite the improvements, the BIR’s and the BOC’s efforts are still a long way from meeting their respective targets for the year of P1.066 trillion and P347 billion, respectively.

The government has set a budget deficit ceiling of P279 billion or 2.6 percent of gross domestic product (GDP) this year and P241 billion or two percent of GDP in 2013.

Purisima expressed hopes that the Senate would finally approve a measure that would raise sin taxes on alcohol and cigarettes by P40 to P60 billion a year.

 “We have no reason to doubt the pronouncements of the acting chair of the Ways and Means Committee, Senator Frank Drilon, that the Senate will maximize the health and revenue impacts of the reform of excise taxes on tobacco and alcohol,” Purisima said.

The Senate is expected to resume discussions on the measure in November.

Budget Secretary Florencio Abad, meanwhile, said that that the improvement in spending in September likely contributed to third quarter economic growth.