The government’s budget deficit widened 4.6 percent in June to P225.4 billion from P215.5 billion a year ago as revenue collection fell 7.91 percent, the Bureau of the Treasury said Friday.
It said this brought the budget gap in the first half to P551.7 billion, although this was 18.17 percent lower than the shortfall of P674.2 billion in the same period last year. The first-half figure was also 28.49 percent below the P771.5-billion mid-year deficit program.
Revenue collections fell 7.91 percent, or P23.0 billion, in June to P267.3 billion. Despite the decline during the month, the total revenues in the first six months increased 7.68 percent to P1.9 trillion and surpassed the target by 2.72 percent or P49.2 billion.
About 89 percent of the cumulative collections came from taxes, while the remaining 11 percent represented non-tax collections.
Data showed that tax collection by the Bureau of Internal Revenue contracted 5.07 percent, or P8.8 billion, in June to P164.7 billion. Overall collection in the first half, however, grew 7.65 percent, or P86.7 billion, to P1.2 trillion, but missed the target for the period by 2.57 percent or P32.2 billion.
Customs’ collections went down by 2.72 percent in June to P74.1 billion from a year ago, but its cumulative six-month performance climbed 9.26 percent, or P36.7 billion, to P433.4 billion. It also topped the target by 3.04 percent or P12.8 billion.
Income generated by the Bureau of the Treasury settled at P10.8 billion in June, 48.19 percent or P10 billion lower than a year ago on reduced dividend remittances. Its cumulative income of P93 billion was also down by 10.68 percent, or P11.1 billion, from last year’s P104.1 billion.
The Treasury said its six-month performance surpassed the program for the period by 92.20 percent or P44.6 billion and was already 59.52 percent or P34.7 billion higher than the P58.3 billion full-year program.
Revenue collections from other offices amounted to P17.7 billion in June and P110.2 billion in the first six months.
Government expenditures in June went down by 2.59 percent, or P13.1 billion, to P492.7 billion on lower national tax allotment shares of local government units and outstanding checks, or those issued but not yet presented for payment or enchashment by suppliers or creditors in various agencies.
The total disbursements in the first six months slightly increased by 0.42 percent to P2.4 trillion, but fell short of the P2.6-trillion first-half program.
“Moreover, the lower-than-programmed interest payments; ongoing implementation of some social protection programs, particularly the registration and validation of beneficiaries; as well as billing concerns from suppliers/creditors, such as late submissions of billing statements and compliance with documentary requirements have affected the spending outturn for the period,” the Treasury said.