The Philippine government posted a budget deficit of P174.9 billion in May 2024, up by 43.10 percent from a year ago on the back of higher spending, the Bureau of the Treasury (BTr) said Thursday.
“The higher deficit resulted from an acceleration in government spending, pushing disbursement growth for the month to 22.24 percent, as against revenue expansion of 14.59 percent,” the BTr said.
Government spending surged to P557 billion in May from P455.7 billion it spent a year ago, driven by the implementation of capital outlay projects of the Department of Public Works and Highways and the Department of National Defense as well as the social and health programs of the Department of Social Welfare and Development, and the Department of Health, respectively.
“The higher national tax allotment shares of LGUs and increased budgetary support to GOCCs also contributed to the notable growth of disbursements in May,” the BTr said.
Disbursements in the first five months reached P2.3 trillion, or 17.65 percent faster than the 2023 spending performance.
This brought the cumulative budget deficit in the five-month period to P404.8 billion, or 24.06 percent more than the P326.3-billion gap recorded in the same period in 2023.
The government collected P382.1 billion in revenue in May, or 14.5 percent higher than a year ago. “The robust outturn for the month was underpinned by higher non-tax collections,” the BTr said.
This pushed five-month collection to P1.9 trillion, outperforming the previous year’s outturn by 16.34 percent.
Tax collection hit P1.6 trillion, accounting for 85.59 percent of total revenues and was 11.18 percent higher than the 2023 figure.
Meanwhile, non-tax collection contributed 14.41 percent, exceeding last year’s outcome by 60.58 percent or P100.7 billion.
The Bureau of Internal Revenue (BIR) raised P219.2 billion in May after netting P717.0 million in tax refunds. The Bureau of Customs (BOC) collected P81.3 billion, also up by 4.33 percent year-on-year.
“The BOC’s improved revenue collection performance can be credited to the continued monitoring of the values and classifications of imported commodities as well as intensified border control and improved trade facilitation,” the BTr said.
The BTr income swelled to P70.2 billion in May, more than twice the level posted a year ago on higher collections from interest on advances from GOCCs, guarantee fees and the NG share from PAGCOR income.