The government incurred a budget deficit of P41.8 billion in June, lower by 22.9 percent or P12.5 billion than the P54.3-billion shortfall in the same month last year as revenue collections rose 4.3 percent and expenditures dropped 1 percent during the month, the Treasury said Monday.
The figure brought the total deficit in the first six months to P42.6 billion or less than a quarter of the P193-billion gap in the same period last year.
Revenue collection in June grew 4.32 percent to P233.9 billion from a year ago. Tax collection, which made up 90 percent of total revenues, rose 11.85 percent. Total revenues in January to June also increased 9.7 percent to P1.547 trillion from a year earlier.
Collections by the Bureau of Internal Revenue went up 15.4 percent in June to P157.8 billion and 10.6 percent in the first six months to P1.066 trillion. Customs collections rose 2.5 percent in June to P51.3 billion and 8.4 percent in the six-month period to P303 billion.
Revenue and income generated by the Bureau of the Treasury surged 37.1 percent in June to P10.7 billion.
“The upturn was driven by dividend remittances, income from national government deposits, bond sinking fund investments and NG [national government] share in Pagcor income. This brought January-June BTr income to P87.6 billion, 32.48 percent better than the previous year and already exceeding the full-year target of P73.9 billion by 18.6 percent,” the Treasury said.
Meanwhile, revenues from other offices (non-tax including privatization proceeds and fees and charges) declined 55.02 percent year-on-year to P12.7 billion in June, mainly due to the one-off remittance of bond proceeds from the Coco Levy fund in 2018. Six-month collections also contracted 11.89 percent to P79 billion.
Meanwhile, the government’s disbursements declined 1 percent in June to P275.7 billion and 0.8 percent in the first six months to P1.590 trillion, as the government operated under a reenacted budget in the first four months of 2019.
Primary expenditures (net of interest payments) declined 3.06 percent year-on-year in June to P246.6 billion. Debt interest payments during the month increased 20.9 percent to P29.1 billion.
The government’s primary balance reached a deficit of P12.7 billion in June but posted a surplus of P137.4 billion in the first half.