The government incurred a budget deficit of P191.4 billion in March, or 167 percent higher than the P71.6-billion shortfall a year ago, as government expenditures rose 22.33 percent while revenue generation declined 17.37 percent, the Bureau of the Treasury said Tuesday.
This resulted in a 273-percent increase in budget deficit in the first quarter to P321.5 billion from the P86.2-billion shortfall in the same period last year.
“Total revenue for the month narrowed to P216.2 billion, 17.37 percent below last year’s performance due to the high base effect of dividend remittances in 2020. Eighty-eight percent of the total collection came from taxes while the remaining 12 percent was generated through non-tax revenue,” the Treasury said.
The P696.5-billion collection in the first quarter also slipped by 8.73 percent or P66.6 billion from P763.1 billion in the equivalent period last year.
Collection by the Bureau of Internal Revenue inched up by 1.28 percent in March to P133.4 billion, net of P830 million for tax refunds. The agency’s cumulative three-month collection of P469.7 billion was also slightly above last year’s outturn of P468.8 billion.
Customs collection reached P54.7 billion in March, up 22.57 percent from a year earlier on improved valuation and intensified collection efforts. This increased BOC’s aggregate revenue from January to March to P149.2 billion, or 2.66 percent higher over the previous year’s take.
The Bureau of the Treasury’s income declined to P16.1 billion in March from P77.0 billion it earned in the same month last year.
“The drop was attributed to dividend remittances which declined by P51 billion relative to last year’s influx due to the Bayanihan to Heal as One Act. Other factors included the lower collection of interest on advances from GOCCs [government-owned and controlled corporations] and national government share from PAGCOR [Philippine Amusement and Gaming Corp.] income. These same factors reduced BTr’s cumulative collection to P39.3 billion, 64.63 percent slower than the end-March 2020 income,” it said.
Collections from other offices other non-tax including privatization proceeds and fees and charges amounted to P10 billion in March, reflecting a 39.60-percent increase from 2020’s comparable outturn owing to a low base effect from the imposition of stricter lockdown measures in the same month last year.
Meanwhile, the resulting year-to-date collection of P31.1 billion was roughly at pace with the previous year’s first quarter total.
Meanwhile, government’s disbursements climbed to P407.6 billion in March, surpassing the previous year’s level by 22.33 percent or P74.4 billion.
The Treasury said the increase was “buoyed mainly by the disbursements for the infrastructure projects of the DPWH, as well as for the various social welfare programs of the DSWD, DOLE, and the OWWA.”
“The continuing implementation of the Bayanihan II for initiatives such as the Rice Resiliency Program of the DA and health programs of the DOH also contributed significantly to the strong spending performance in March,” it said.
This pushed the total expenditure as of end-March to P1.017 trillion, outstripping last year’s first-quarter disbursements of P849.2 billion by 19.86 percent.
Primary expenditures in March also grew by 24.08 percent year-on-year to P359.9 billion, bringing the year-to-date primary spending to P892.1 billion, also higher than the previous year’s figure by 22.31 percent.
Meanwhile, interest payments for the month reached P47.7 billion, up by 10.56 percent over last year’s payment of P43.1 billion. As a result, the total interest payments of P125.9 billion in the first quarter increased by 4.98 percent from P119.9 billion paid in the first quarter of 2020.