The government’s budget deficit in 2017 slightly narrowed to P350.6 billion from P353.4 billion in 2016, on combined effects of stronger revenue collection and slower-than-expected public expenditures, the Bureau of the Treasury said Tuesday.
The Treasury said the 2017 gap fell 27 percent of the year’s deficit ceiling of P482.1 billion. The figure represented 2.2 percent of the gross domestic product, within the 3-percent ceiling set for the year.
Data showed the 2017 revenue collection hit P2.47 trillion, exceeding the program of P2.426 trillion by 2 percent. It was also 13 percent, or P277.2 billion higher than P2.195 trillion collected in 2016.
Government expenditures increased 11 percent, or P274.4 billion, to P2.823 trillion last year from P2.549 trillion in 2016. It was, however, 3 percent below the programmed spending of P2.909 trillion for the year.
The Treasury said that in December alone, the budget deficit narrowed 9 percent to P107.1 billion from P118.2 billion a year ago. Revenues grew 35 percent in December to P223.1 billion from P165.3 billion a year earlier while spending rose 16 percent to P330.2 billion from P283.6 billion.
The Bureau of Internal Revenue collected P151.2 billion in December, up 29 percent or P34 billion from the final month of 2016, marking its highest year-on-year growth for 2017.
Full-year BIR collections totaled P1.772 trillion, missing the program by 1 percent but rising 13 percent from a year ago.
“BIR collection is net of the P8.5-billion tax refund paid to various claimants for the year. Inclusion of the tax refund will drive total collection to P1.780 trillion,” the Treasury said.
Collections by the Bureau of Customs also came in strong at P45.1 billion, as December receipts grew 29 percent over the previous year’s P34.8 billion, equaling its performance in October. For the whole year, Customs collected P458.2 billion, narrowly missing the program of P459.6 billion. Tax refunds amounted to P2.6 billion for a total gross collection of P460.8 billion .
The Bureau of the Treasury’s income in December doubled from a year ago to reach P13.4 billion, for a full-year total of P99.9 billion.
Collections from other offices (non-tax) in December amounted to P12.7 billion, more than double the revenue posted in December 2016. Full-year revenue from other offices expanded 8 percent to P122.5 billion and was 11 percent better than program.
The government said disbursements in December amounted to P330.2 billion, up 16 percent year-on-year for a full-year total of P2.823 trillion. Of the total, 89 percent were for primary expenditures, while the remaining 11 percent went to interest payments.
Interest payments in December amounted to P20.6 billion, 8 percent or P1.5 billion higher year-on-year. Total interest payments in 2017 hit P310.5 billion, up by 2 percent or P6.1 billion but still 7 percent below program, generating savings of P24.3 billion.
“The higher interest payment for 2017 was due to coupon payments for retail treasury bonds issued in September 2016 and April 2017, and fluctuations in foreign exchange rates,” the Treasury said.
“Net of interest payments, actual government spending [P2.513 trillion] compared to program spending [P2.574.1 trillion] is off by just P60.9 billion or by 2 percent,” the Treasury said.
The agency further said that net of interest payments, the national government achieved a P40.1-billion primary deficit in 2017, P8.9 billion lower than the recorded primary deficit in 2016. This was also 73 percent or P107.1 billion better than the program.