Budget deficit widens 3-fold in Sept

Slower revenue growth, accelerated spending

MANILA, Philippines – The government incurred a budget deficit of P75.3 billion in September, widening the shortfall by more than three times from last year after slow revenue growth failed to offset a spending surge.

The deficit – which indicates more revenues spent than earned –  was sharply  higher from just P22.1 billion a year ago, the Bureau of the Treasury reported yesterday.

Broken down, revenues inched up one percent to P166 billion, while expenditures jumped 30 percent to P241.3 billion. Officials could either not be reached or declined to comment.

“It will be good to look at the quarter-on-quarter data for revenues. Since the third quarter just ended, it might also reflect the weak performance of some companies,” said Alvin Ang, economist at Ateneo de Manila University.

“The spending part may not be comparable because of the one-time spending,” he added.

According to the Treasury, spending last month was affected by a P20.5-billion payment to the Philippine International Air Terminals Co., which won a case against the government over the building of the Ninoy Aquino International Airport Terminal 3.

The Supreme Court ruled that PIATCO was entitled to $326.93 million in just compensation for the expropriation of the property.

It was not clear how much of the amount, valued in 2004, had been paid already.

Broken down, actual spending by agencies rose 34 percent to P208.7 billion in September, while debt interest payments increased eight percent to P32.6 billion.

On the revenue front, the Bureau of Internal Revenue (BIR) collected P113 billion, up just one percent year-on-year, data showed.

This marked a slowdown from a 10-percent expansion in August, which in itself was a recovery from one percent in July, the first month of the Duterte administration.

The Bureau of Customs, meanwhile, registered a two-percent growth to P33.3 billion. BIR and Customs collectively account for 90 percent of state revenues.

Treasury also contributed P7.7 billion, which was down three percent from year-ago levels.

For the first nine months, the deficit already hit P188.2 billion, around 48 percent of this year’s P388.9-billion cap for the year.

Revenues were up three percent to P1.65 trillion, while expenditures rose 14 percent to P1.86 trillion during the period.