Budget gap below ceiling
Published Jul 23, 2018 12:00 am
By Chino S. Leyco
The Duterte administration’s budget deficit remained below ceiling in the first semester of the year despite the government’s above-target expenditures owing to strong revenue collections, the Bureau of the Treasury reported yesterday.
National Treasurer Rosalia V. de Leon
National Treasurer Rosalia V. de Leon said that the government’s robust revenue take in January to June will allow them to be less aggressive in terms of borrowings in the remaining months of the year ahead of the anticipated rise in interest rates.
“Sustained strong revenue collections provide comfortable cash buffer to moderate borrowings amidst rising rate environment,” De Leon said in a mobile phone message when sought for comment on the Treasury’s latest fiscal report.
At end-June, the government’s fiscal gap stood at P193 billion, lower by 27 percent against the program of P264.3 billion, but higher by 25 percent compared with P154.5 billion in the same period last year.
The lower-than-expected deficit comes despite the government’s above target expenditures.
The treasury data showed that public spending reached P1.603 trillion in the first six-months, exceeding the government’s goal of P1.569 trillion by two percent. The latest figure was also higher year-on-year by 20 percent from P1.33 trillion.
Of the total expenditures, interest payments amounted to P165.5 billion, lower by four percent against program that resulted in savings of P7.5 billion. This also represented for just 10.3 percent of total disbursements at end-June.
Revenues, on the other hand, breached the P1.304-trillion target for the period by eight percent to P1.41 trillion. Year-on-year, the government’s first semester income rose by 20 percent from P1.176 trillion.
The Bureau of Internal Revenue (BIR) contributed P964.5 billion, which exceeded the P938.7 billion target by three percent. The first semester collections were also higher by 14 percent compared with R848 billion in the same period in 2017.
“The bureau credits improved tax administration and the impact of the Tax Reform for Acceleration and Inclusion (TRAIN) Law for the strong performance during the first half of the year,” the treasury said.
The Bureau of Customs, meanwhile, collected P279.4 billion in January to June, indicating a 33 percent improvement year-on-year and topped the target of P270.3 billion by three percent.
“Proper valuation and tariff classification of goods, as well as a strengthened campaign against illegal trade, contributed to the sustained good performance of the bureau,” the Treasury said.
Income of the treasury, on the other hand, doubled the P31.5-billion goal to P66.1 billion and higher by 25 percent compared with the same period last year.
“To date, BTr has already exceeded its full-year target by P10.4 billion on account of higher dividend collections,” the bureau said.
Treasury’s collection of guarantee fees and share from the Philippine Amusement and Gaming Corp.’s profit also improved in the first semester.
In June alone, the government’s fiscal deficit declined by 40 percent to P53.3 billion from P90.9 billion in the same month last year. Revenues amounted to P224.2 billion, up 25 percent year-on-year, while expenditures rose three percent to P278.5 billion.
For 2018, the Duterte administration’s economic team programmed its budget deficit at three percent of the country’s economy, as measured by its gross domestic product (GDP).
National Treasurer Rosalia V. de Leon
National Treasurer Rosalia V. de Leon said that the government’s robust revenue take in January to June will allow them to be less aggressive in terms of borrowings in the remaining months of the year ahead of the anticipated rise in interest rates.
“Sustained strong revenue collections provide comfortable cash buffer to moderate borrowings amidst rising rate environment,” De Leon said in a mobile phone message when sought for comment on the Treasury’s latest fiscal report.
At end-June, the government’s fiscal gap stood at P193 billion, lower by 27 percent against the program of P264.3 billion, but higher by 25 percent compared with P154.5 billion in the same period last year.
The lower-than-expected deficit comes despite the government’s above target expenditures.
The treasury data showed that public spending reached P1.603 trillion in the first six-months, exceeding the government’s goal of P1.569 trillion by two percent. The latest figure was also higher year-on-year by 20 percent from P1.33 trillion.
Of the total expenditures, interest payments amounted to P165.5 billion, lower by four percent against program that resulted in savings of P7.5 billion. This also represented for just 10.3 percent of total disbursements at end-June.
Revenues, on the other hand, breached the P1.304-trillion target for the period by eight percent to P1.41 trillion. Year-on-year, the government’s first semester income rose by 20 percent from P1.176 trillion.
The Bureau of Internal Revenue (BIR) contributed P964.5 billion, which exceeded the P938.7 billion target by three percent. The first semester collections were also higher by 14 percent compared with R848 billion in the same period in 2017.
“The bureau credits improved tax administration and the impact of the Tax Reform for Acceleration and Inclusion (TRAIN) Law for the strong performance during the first half of the year,” the treasury said.
The Bureau of Customs, meanwhile, collected P279.4 billion in January to June, indicating a 33 percent improvement year-on-year and topped the target of P270.3 billion by three percent.
“Proper valuation and tariff classification of goods, as well as a strengthened campaign against illegal trade, contributed to the sustained good performance of the bureau,” the Treasury said.
Income of the treasury, on the other hand, doubled the P31.5-billion goal to P66.1 billion and higher by 25 percent compared with the same period last year.
“To date, BTr has already exceeded its full-year target by P10.4 billion on account of higher dividend collections,” the bureau said.
Treasury’s collection of guarantee fees and share from the Philippine Amusement and Gaming Corp.’s profit also improved in the first semester.
In June alone, the government’s fiscal deficit declined by 40 percent to P53.3 billion from P90.9 billion in the same month last year. Revenues amounted to P224.2 billion, up 25 percent year-on-year, while expenditures rose three percent to P278.5 billion.
For 2018, the Duterte administration’s economic team programmed its budget deficit at three percent of the country’s economy, as measured by its gross domestic product (GDP).