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Wednesday, April 24, 2024

Budget deficit declined 26% in May on lower spending

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The government incurred a budget deficit of P146.8 billion in May, down 26.72 percent from P200.3 billion a year ago on double-digit revenue growth and a slight contraction in government spending, the Bureau of the Treasury said Thursday.

The figure brought the budget deficit in the first five months to P458.7 billion, down 19 percent or P107.5 billion from the previous year’s gap of P566.2 billion.

Data from the Treasury showed government expenditures fell 1.1 percent in May to P451.7 billion from P456.7 billion a year ago. Five-month cumulative disbursements reached P1.895 trillion, up 4.7 percent or P84.9 billion from the same period last year.

Revenue collection climbed by 18.91^ percent in May to P304.9 billion from P256.4 billion in the same month last year. This resulted in a cumulative collection of P1.437 trillion in the five-month period, 15 percent or P192.4 billion higher than a year earlier.

About 90 percent or P1.289 trillion of the total collections came from taxes while the remaining 10 percent or P147.6 billion represented non-tax revenues.

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Net collections by the Bureau of Internal Revenue grew 17.9 percent in May to P216.6 billion from P183.7 billion a year earlier. The agency’s total five-month collection of P959.0 billion surpassed last year’s performance by 9.92 percent or P86.6 billion.

Collections by the Bureau of Customs went up 36.35 percent in May to P66.3 billion from a year ago, the highest growth achieved since the beginning of the year. The Customs’ cumulative collections in the first five months hit P320.5 billion, 28.42 percent or P70.9 billion above the previous year’s outcome of P249.6 billion. Julito G. Rada

The Bureau of the Treasury’s income amounted to P8.9 billion in May, down by 28.22 percent or P3.5 billion from a year earlier on lower dividend remittances. Five-month Treasury revenues of P83.4 billion still grew by 37.08 percent or P22.5 billion from last year’s P60.8 billion.

Primary spending, net of interest payment, amounted to P417.9 billion, down by 2.3 percent or P9.9 billion year-on-year. The cumulative primary expenditures as of end-May hit P1.675 trillion, 2.64 percent or P43.1 billion higher than comparable figures last year.

Excluding interest payments from expenditures, the government incurred a P113-billion primary deficit in May and P238.2-billion shortfall in the first five months.

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