Budget deficit widens in Q1

MANILA, Philippines — The Philippines posted a wider budget gap in the first three months of the year, as public spending outpaced revenue performance, treasury data released on Tuesday show.

Fiscal deficit in the first quarter reached P162.2 billion, bigger than the P83 billion recorded last year. For this year, the government has set a budget deficit cap of P523.6 billion, equivalent to 3 percent of gross domestic product.

Disbursements in the first quarter grew 27 percent to P782.0 billion, 3 percent above the target. On the other hand, revenue collection improved 16 percent to P619.8 billion, breaching the ceiling set for the period by 15 percent.

Expenditure

In March, state spending clocked a double-digit growth of 30 percent to P313 billion.

Infrastructure and other capital outlays sustained their upswing, rising by 32.4 percent year-on-year to reach P63.4 billion in March. Personnel services, meanwhile, grew 23 percent year-on-year to close at P86.3 billion.

“The outlook on government spending remains sanguine, and we expect government spending to prop up the growth prospects of the Philippine economy as we aim for economic expansion at the rate of 7-8 percent in the medium-term,” Budget Secretary Benjamin E. Diokno said in a statement.

“We will not let up in our efforts to limit underspending and continue with the efficient and accountable management of public resources,” he added.

Revenue

Total revenues generated in March stood at P202.4 billion, 12 percent higher than P180.2 billion in the same month last year.

According to the Bureau of Treasury, the Tax Reform for Acceleration and Inclusion Act, or TRAIN law, continued to boost tax collections for the month, with the Bureau of Internal Revenue marking its third consecutive month of double-digit collection growth.