Gov’t incurs P84.1-B budget deficit in Q1

MANILA, Philippines - The government’s first quarter budget deficit widened from a year ago as expenditures outpaced revenues.

In a report, the Department of Finance (DOF) said the government incurred a fiscal gap of P84.1 billion in the first three months of the year, which was 27 percent more than the P66.5 billion in the same three months of last year.

Expenditures climbed 12 percent year-on-year, faster than the nine percent increase in revenues, thus the deficit.

The government incurred nearly half of the first-quarter deficit in March when the fiscal gap reached P40.2 billion, 14 percent more than the P35.1 billion a year ago.

Spending and revenue grew at the same pace last month, but the government raised only P129.3 billion whereas expenditures were higher at P169.5 billion, thus the deficit in March.

Interest payments reached P30.8 billion last March or 18.2 percent of total expenditures. 

Collections by the Bureau of Internal Revenue rose eight percent to P264.7 billion.

The Bureau of Customs sustained its double-digit revenue growth, rising 26 percent to P86.5 billion.

 â€œGrowing revenue collections, most notably that of the Bureau of Customs, is just one of several wins we have garnered recently. Cash collections from January to October 2013, which was before the aggressive reforms at the Bureau, grew only 4.9 percent over the same period a year before. However, from November 2013 to March 2014, the time when the reform program at Customs had begun to stabilize, the year-on-year improvement spiked up to 23.9 percent,” Finance Secretary Cesar Purisima said.

“We have made great strides in bolstering the foundation of economic development, through the signing of the Bangsamoro Peace Agreement, the awarding of the Mactan-Cebu International Airport contract, and the restoring of the Philippine commercial aviation industry’s status to Category 1,” Purisima said.

Budget Secretary Florencio Butch Abad said government spending will remain in check so agencies can implement their programs immediately and ensure that key services are promptly delivered to the public.