The government’s budget deficit fell 28.4 percent in July to P86.8 billion from P121.2 billion a year ago, as revenue collections grew faster than expenditures, the Bureau of the Treasury said Friday.
The gap narrowed the budget deficit in the first seven months by 9.11 percent to P761 billion from P837.3 billion in the same period last year.
Data from the Treasury showed that the government’s disbursements in July rose 4.81 percent to P395.4 billion, bringing total expenditures in the first seven months to P2.8 trillion, up by 8.26 percent or P213.4 billion from a year ago.
Revenues in July jumped 20.53 percent to P308.6 billion from P256.1 billion a year earlier. This brought total collections in the first seven months to P2.0 trillion, up from P1.7 trillion a year ago.
The Treasury said of the total revenues, 90 percent or P1.8 trillion was raised through tax collections which recorded a 15.82-percent growth year-on-year. Non-tax revenues, which comprised 10 percent, also grew by 23.61 percent or P40.7 billion, driven by higher income of the Bureau of the Treasury.
Net collection of the Bureau of Internal Revenue in July went up 15.55 percent to P197.4 billion from a year earlier.
“BIR’s higher uptake is attributable to its continued strict enforcement, as well as the implementation of its digitization program. Similarly, the agency’s cumulative collection for the January to July period amounting to P1.3 trillion registered a 10.59-percent or P127.3-billion increase from last year’s seven-month total of P1.20 trillion,” the Treasury said.
Collections by the Bureau of Customs reached a record P83.6 billion (net of P821.0 million tax refund) in July, on improved valuation, digitized and modernized systems and the gradual reopening of the economy which resulted in higher import volume.
Customs’ total revenue in the first seven months reached P480.3 billion, 33.82 percent or P121.4 billion higher than a year ago.
The P13.4-billion income collected and generated by the Bureau of the Treasury in July reflected a year-on-year marginal decrease of 1.67 percent, weighed down by lower dividend remittances and interest income from government deposits.
These were partially offset by higher income from investments and the government’s share from income of the Philippine Amusement and Gaming Corp.
Non-tax revenue from other offices including privatization proceeds and fees and charges expanded by almost 13 percent or P1.5 billion to P13.3 billion in July from P11.8 billion last year.
Primary expenditures, net of interest payment, accounted for 87 percent (P343.3 billion) of the total monthly disbursements, up by 7.88 percent or P25.1 billion from last year’s P318.2 billion.
The Treasury said that as of end-July, total primary expenditures reached P2.5 trillion, expanding by 7.41 percent or P171.7 billion.
“Deducting interest payments from expenditures, the national government’s primary deficit for July amounting to P34.7 billion was lower by 44.22 percent or P27.5 billion year-on-year. The year-to-date primary deficit of P451.7 billion similarly went down compared to the level incurred for the same period a year ago by 20.72 percent or P118.0 billion,” the Treasury said.
