The government’s budget deficit doubled to P90.9 billion in June from a P45.2-billion shortfall a year ago, as expenditures outpaced revenue collection during the month.
Data from the Bureau of the Treasury showed expenditures in June jumped 23 percent to P270.7 billion from P220.8 billion a year earlier, while revenues increased 2 percent to P179.8 billion from P175.6 billion.
“The deficit performance reflects the 23-percent year-on-year rise in expenditures against collection growth of 2-percent for the month,” the Treasury said.The actual deficit in June was also significantly higher than the P16.7–billion deficit programmed for the month.
This brought the first-half deficit to P154.5 billion, up 28 percent from the P120.3-billion deficit in the first six months of 2016. This was also significantly higher than the programmed deficit of P143.8 billion in the first half of 2017.
“With 93.5 percent coming from tax collections, revenues reached P179.8 billion in June for a 2-percent year-on-year growth. Meanwhile, year-to-date collection amounted to P1.176.4 trillion, registering a 7-percent increase over the previous year and only P16.6 billion or 1 percent below program,” the Treasury said.
The Bureau of Internal Revenue collected P 131.2 billion in June, up 6 percent year-on-year. BIR collections increased 8 percent in the first half to P848.0 billion, but lagged behind the program by 4 percent.
The Bureau of Customs collected P35.4 billion in June, roughly the same amount as it did in the same month last year. Stronger collections in previous months allowed for 10-percent growth in the year-to-date total of P210.3 billion, which was short of the program by 3 percent.
Income collected by the Bureau of the Treasury decreased 8 percent year-on-year to P4.7 billion due largely to lower remittance of the national government share in Philippine Amusement and Gaming Corp. income which declined P716 million.
Non tax revenue from other offices exhibited a year-on-year contraction of 28 percent for a monthly total of P7 billion. Year-to-date revenue settled at P54.6 billion reflecting a 1-percent growth over 2016’s level and 7 percent better than programmed.
Spending of the national government continued its double-digit growth since May, increasing by 23 percent year-on-year to P270.7 billion in June 2017. Of the total, only 7.1 percent went to interest payments from 8 percent a year ago.
“Part of the higher expenditure for the month can be attributed to the P35.5-billion budgetary support to GOCCs [government-owned and -controlled corporations] which has more than doubled year-on-year. In addition, releases to local government units is also up by P18.1 billion compared to last year,” the Treasury said.
Total expenditures grew 9 percent in the first half to P1.330 trillion from P1.221 trillion a year ago. Interest payments declined 1 percent to P151. 6 billion from P153.7 billion.
The government registered a primary deficit of P71.6 billion in June, more than double the P27.5 billion primary deficit a year ago. “This caused the first semester’s cumulative figure to also slip into a deficit of P2.9 billion,” the Treasury said.