The government’s budget deficit widened 175 percent in October to P59.9 billion from P21.8 billion a year ago, as expenditures continued to outpace revenue collection, the Bureau of the Treasury said Monday.
Data showed that public spending in October jumped 35 percent, outperforming the 20-percent expansion in revenue collection.
This resulted in a wider cumulative budget deficit of P438.1 billion in the first 10 months, or 87 percent higher than the previous year’s level of P234.9 billion. The 10-month figure also represented 84 percent of the 2018 full-year deficit program of P523.7 billion.
“Government revenues stood at P246.8 billion in October, 20 percent or P41.7 billion higher than what was registered in the same month last year. Similarly, collections for January to October 2018 increased by 18 percent or P351.7 billion compared to actual collections of P2,006.5 billion posted in the first ten months of 2017,” the Treasury said.
Collection by the Bureau of Internal Revenue increased 16 percent to P164.8 billion in October from P142.5 billion in the same month last year. The higher collection offset the contraction posted in the previous month.
This enabled the agency to realize a year-on-year growth of 12 percent in January to October to P1.6 trillion.
The Bureau of Customs raised P56 billion in October, up by 30 percent or P13billion year-on-year. Cumulative collection hit P490.6 billion as of end-October, up by 34 percent from the previous year.
The Bureau of the Treasury generated P8.4 billion in revenue in October or 10 percent above the prior year’s achievement. The Treasury’s 10-month income also jumped 20 percent to P98.9 billion from P82.3 billion.
Revenues from other offices reached P16.1 billion in October and P141.7 billion in 10 months.
Government spending went up 35 percent to P306.6 billion. “This marked the second highest monthly disbursement growth for the year following the 43-percent growth recorded in April. Year-to-date expenditures of P2.79 trillion is 25 percent higher compared to last year’s spending of P2.24 trillion,” the Treasury said.
Primary expenditures, net of interest payments, hit P282.6 billion in October, higher by 37 percent than October 2017’s P206.4 billion.
“Netting out interest payments from expenditures, the national government’s primary deficit for October was P35.9 billion, far exceeding the last year’s figures of P1.4 billion. This resulted in a year-to-date primary deficit of P142.8 billion, a reversal from the P34.5 billion primary surplus posted in the same period last year,” the Treasury said.