Higher spending widened the budget deficit in January

The government’s budget deficit rose 66.3% in January to 23.4 billion pesos from 14.1 billion pesos a year ago, while government disbursements rose 9.7%, outpacing the 6.7% increase in revenue collection, according to data from the Office of the Treasury. To display.

Revenue collection stood at 278.1 billion pesos in January, up 17.3 billion pesos from a year ago. Most of the total, 92%, came from taxes amounting to 255.3 billion pesos, while non-tax collections amounted to 22.8 billion pesos.

Collections by the Bureau of Internal Revenue increased 7.5% to 195.8 billion pesos, 13.6 billion pesos more than the 182.2 billion pesos collected in January 2021.

The 58.3 billion pesos collected by the Customs Bureau also increased by 23.43 percent or 11.1 billion pesos from the 47.3 billion pesos posted in the same period last year.

“The improvement of valuation, the intensification of the fight against illegal import, the improvement of traders’ compliance with customs laws, the gradual improvement of the volume of imports and the government’s efforts to guarantee the free domestic and international movement of goods led to the month’s positive performance,” the Treasury said in a statement.

Revenue generated by the Treasury Office fell 41.75 percent to 10.9 billion pesos from a year earlier, due to the high base effect of National Transmission Corp’s dividend payouts. and Philippine Amusement and Gaming Corp. in January 2021.

January collections from other offices amounted to 11.9 billion pesos, up 7.96 percent from last year’s result of 11.0 billion pesos.

Meanwhile, government disbursements increased by 9.70 percent or 26.7 billion pesos in January to 301.5 billion pesos due to an increase in national tax allocations. Of the total, 78% or 235.9 billion pesos was primary expenditure which rose 3.57% from last year’s level.

Interest payments of 65.6 billion pesos also increased by 39.40% compared to 47.0 billion pesos last year. Interest payments accounted for 23.57% of revenue and 21.74% of expenses, up from 18.04% and 17.11% last year, respectively.

“Net of interest payments, the national government’s primary surplus for the first month of the year reached 42.2 billion pesos, or 27.92% or 9.2 billion pesos more than the surplus primary of 33.0 billion pesos recorded in the equivalent period of last year,” the Treasury said.

The government posted a budget deficit of 1.67 trillion pesos in 2021, 21.78% higher than the deficit of 1.37 trillion pesos in 2020, as the 10.60% increase in spending exceeded the 5.24% increase in revenue.

The deficit for the full year was equivalent to 8.61% of gross domestic product, lower than the programmed 9.3% but still higher than the 7.65% recorded in 2020.

Data from the Ministry of Finance showed that BIR and Customs collected a total of P2,732 billion in 2021, exceeding their combined collection target of P2,698 billion by 1.26 percent for the period.

The amount raised by BIR and Customs for 2021 was 9.78% higher than their actual combined collection of 2,489 billion pesos in 2020. BIR collected 2,086 billion pula, 0.25% more than its target set by the Development Budget Coordinating Committee of P2,081 billion for the year.

BIR’s collection in 2021 was 6.93% higher than its actual collection of 1.951 trillion pesos in 2020, according to Undersecretary for Finance Antonette Tionko.

Customs collection reached 645.77 billion pesos in 2021, against the target set by the DBCC of 616.75 billion pesos. It also exceeded its actual collection of 537.69 billion pesos in 2020 by 20.10 percent, Tionko said.

The data showed that on a daily basis, the combined BIR and Customs collection averaged about 11.02 billion pesos against the daily collection target of 10.88 billion pesos, according to the data. DOF estimates.

Comments are closed.