The Bureau of the Treasury (BTr) said the government posted a primary deficit of P16.7 billion in the first 10 months and P14.4 billion for the month of October alone.

The primary deficit is reported along with the National Government budget deficit. It is revenues minus expenditures but excluding interest payments on government debt. By excluding net interest, finance officials said the primary balance is a more direct measure of state spending.

For this year, based on a programmed deficit of P250 billion, the primary balance program is a surplus of P61.2 billion. The government has already missed its primary balance program in the first three quarters.

Revenues collected from January to October were lower year-on-year or P925.4 billion while expenditures net of interest payments amounted to P942.1 billion, up 20.4 percent from the same period in 2008.

For October alone, revenues amounted to P85.6 billion, 7.6 percent down from 2008 while expenditures minus interest payments totaled P100 billion, 19 percent more year-on-year.