PHILIPPINES FISCAL POSITION REVERTS TO DEFICIT IN MAY

The Philippine government’s fiscal position swung back to a deficit in May amid an acceleration in state spending during the period, data released by the Bureau of the Treasury (BTr) on Thursday showed.

The national government’s budget balance stood at a deficit of P174.9 billion last month, from a surplus of P42.7 billion in April.

Year-on-year, May’s budget gap widened by 43.10% from the P122.2-billion fiscal shortfall in the same month last year.

“The higher deficit resulted from an acceleration in government spending, pushing disbursement growth for the month to 22.24%, as against revenue expansion of 14.59%,” the Treasury.

A budget deficit means government expenditures exceed collections, while a surplus occurs when the state spends less money than what it collects during a period.

The year-to-date budget deficit stood at P404.8 billion, up 24.06% from the P326.3 billion gap in the same period in 2023.

Expenditures

The national government’s disbursements in May totaled P557 billion, up 22.24% from P455.7 billion a year earlier.

“The increase was driven largely by the implementation of capital outlay projects of the Department of Public Works and Highways, and the Department of National Defense, as well as the social and health programs of the Department of Social Welfare and Development, and the Department of Health, respectively,” the BTr said.

“The higher National Tax Allotment shares of LGUs and increased budgetary support to GOCCs also contributed to the notable growth of disbursements in May,” the Treasury said.

The January to May expenditures, meanwhile, stood at P2.3 trillion, up 17.65% year-on-year.

Broken down, primary expenditures amounted to P81.6 billion last month while the year-to-date primary expenditures grew by 14.6% to P1.9 trillion.

Interest payments, on the other hand, stood at P61.1 billion in May, up 47.78% year-on-year; while year-to-date interest payments amounted to P321.6 billion, up 40.08% from P229.6 billion in the same period last year.

Revenues

Collections by the national government reached P382.1 billion in May, up 14.59% from a year earlier. 

“The robust outturn for the month was underpinned by higher non-tax collections,” the BTr said.

Year-to-date state collections grew by 16.34% to P1.9 trillion.

State revenues were mostly from taxes at 85.59% of the total in the January to May period, amounting to P1.6 trillion, up 11.18% year-on-year.

Non-tax collection, meanwhile, accounted for 14.41% of the total, exceeding last year’s outcome by 60.58%.

In May, the Bureau of Internal Revenue (BIR) raised P219.2 billion, resulting from higher tax collections on value-added tax, taxes on net income and profit (withholding at source and on wages of personal income tax), and miscellaneous tax. 

For the first five months of 2024, the BIR’s collection totaled P1.2 trillion, up 12.81% year-on-year on account of higher receipt from VAT, percentage tax, taxes on net income and profit, and documentary stamp tax.

The Bureau of Customs (BOC) collected a total of P81.3 billion for May, up 4.33% from a year earlier.

“The BOC’s improved revenue collection performance can be credited to the continued monitoring of the values and classifications of imported commodities, as well as intensified border control and improved trade facilitation,” the Treasury said.

The Customs’ cumulative collection from January-May also grew by 6.01% to P380.9 billion.

The BTr, meanwhile, collected P70.2 billion, “more than twice the level posted a year ago due to higher collections from interest on advances from GOCCs, guarantee fees, and the NG share from PAGCOR income.”

“This pushed BTr’s year-to-date income to P206.5 billion, outperforming last year’s level for the same period by more than twofold on account of higher dividend collections, and interest on advances,” it said.

The collections from other offices, including privatization proceeds and fees, for May dropped by 44.38% or P6.4 billion to P8 billion from P14.4 billion a year ago “due to the reclassification of accounts from the previous months’ transactions.”

Consequently, year-to-date collections from other offices stood at P60.5 billion, down by 27.97% year-on-year. —NB, GMA Integrated News

This article Philippines fiscal position reverts to deficit in May was originally published in GMA News Online.

2024-06-27T14:09:15Z dg43tfdfdgfd