MANILA, Philippines - The government expects to incur a budget deficit of P84.66 billion in the first half of the year or more than double the P34.5 billion recorded in the same period in 2012 as it continues to pump-prime the economy with increased expenditures.
Data from the Department of Finance (DOF) showed that expenditures are seen to reach P945.7 billion from January to June this year, 18.9 percent higher than the previous year’s P795.4 billion.
Total revenues are forecast to hit P861.04 billion, up 13.16 percent from P760.92 billion a year earlier.
Tax collections are seen to reach P791.36 billion, of which P620.28 million will come from the Bureau of Internal Revenue (which represents an increase of 19 percent from the P521.16 million collected a year ago).
The Bureau of Customs, on the other hand, is expected to contribute P163.85 billion to state coffers.
The Bureau of Treasury, meanwhile, is seen to remit P31.59 million in the first six months of the year, lower than the year ago’s P50.22 million.
For April to June alone, the country is targeting a budget deficit of P493 billion. Government spending, on the other hand, is seen to amount to P493 billion.
For the whole of 2013, the Aquino Administration is eyeing a budget deficit of P238.03 billion which is in line with its goal to trim it to two percent of the country’s gross domestic product (GDP) this year until 2016 when President Aquino’s term ends.
A low debt-to-GDP ratio indicates an economy that produces a large number of goods and services and profits that are high enough to pay back debt.
The government expects to sustain its double digit growth in revenues with total collections seen hitting P1.74 trillion or 13.7 percent higher than the P1.61 trillion reported in 2012. Of the total, P1.61 trillion will come from tax revenues.
The BIR and BOC are tasked to collect P1.25 trillion and P340 billion, respectively, this year, up 19 percent and 20.4 percent compared to 2012 level of P1.05 trillion and P282.3 billion.
The Bureau of Treasury is seen contributing in P57.23 billion while other offices are expected to turn over P14.19 billion to the government.
Expenditures, meanwhile, are forecast to rise 11.2 percent to P1.98 trillion.
To sustain the country’s strong fiscal performance, the DOF will continue to beef up revenue collections particularly with respect to estate or inheritance tax and income taxes from the self-employed and professionals sector, as well as declaration of import values.