The government’s budget deficit declined 8.8 percent in February to P105.8 billion from a year ago, as revenue collection fell 3.26 percent and public spending slowed down 5.16 percent, the Bureau of the Treasury said Thursday.
Data from the Treasury showed the budget deficit in the first two months settled at P129.2 billion, slightly lower by 0.6 percent than in the same period in 2021.
Revenue collection shrank 3.3 percent in February to P212.4 billion, although total revenues in the first two months were still up 2.1 percent to P490.5 billion.
Taxes accounted for 92 percent or P453.1 billion of the total collection, while 8 percent was generated through non-tax sources.
The Bureau of Internal Revenue’s collection in February decreased 11.4 percent to P136.6 billion from P154.1 billion in the same month last year. BIR’s cumulative uptake as of end-February amounted to P332.4 billion, also down by 1.2 percent or P3.9-billion from a year ago.
Customs’ collection climbed 26 percent in February to P59.4 billion as a result of improved valuation and continued intensified collection efforts. This increased BOC’s cumulative collection in the two-month period to P117.8 billion, up by 24.7 percent or P23.3 billion from a year earlier.
Income from the Bureau of the Treasury amounted to P4.2 billion for the month, down by 7.4 percent from the February 2021 level.
“The downturn was mainly attributed to lower dividend remittances from government corporations, guarantee fees and income from government deposits. Compared to January-February 2021’s actual collection of P23.2 billion, BTr’s year-to-date income for this year has similarly dropped by 35 percent or P8.1 billion to P15.1 billion largely due to lower dividends on shares held by the government,” it said.
Collections from other offices such privatization proceeds, fees and charges, amounted to P10.4 billion, lower by 11.53 percent or P1.4 billion than in February 2022. This resulted in a cumulative collection of P22.3 billion in the two-month period, or 2.1 percent behind the previous year’s level. Julito G. Rada
Meanwhile, total expenditures in February went down by 5.16 percent or P17.3 billion from a year ago to P318.2 billion on account of the completion of the P45.0-billion equity infusion to government financial institutions in February last year, in line with the implementation of Republic Act No. 11494 or the Bayanihan to Recover as One Act (Bayanihan II).
“However, netting out the said amount, disbursements grew by 9.64 percent year-on-year largely attributed to the National Tax Allotment of the LGUs, spending for the different programs of the Department of Education, Commission on Elections and COVID-19 vaccine financing under the Department of Health,” the Treasury said.
The cumulative expenditures amounted to P619.7 billion in the first two months, up by 1.53 percent or P9.3 billion from a year ago.
Deb interest payments in February reached P28.2 billion, 9.42 percent or P2.9 billion lower than in the previous year’s level. Total interest payments from January to February increased by 19.94 percent or P15.6 billion to P93.8 billion on a year-to-date basis.