The Department of Finance (DoF) said Wednesday that the country's budget deficit in the first three-months of the year may fall below the P110.9 billion target due to higher revenues from the two-main tax agencies.

Finance Undersecretary Gil S. Beltran, said the national government may post a P109.9 billion financing gap in January to March this year, slightly lower against the target despite government's failure to sell three-key assets.

“We're hopeful that we've been able to reduce the deficit below P110.9 billion. It's either we hit it right in the head or a little better,” Beltran said in an interview.

The good performance of the Bureau of Internal Revenue (BIR) and Bureau of Customs at end-March, Beltran said “to offset” the unrealized revenue from the privatization in the first-quarter of the year.

The DoF expects to generate P14 billion proceeds from the sale of Food Terminal Inc. complex in Taguig City, Malampaya Deep Water Gas to Power Project and the lease and development of its Fujimi property in Tokyo, Japan.

On Monday, the BIR, which accounts for around two-thirds of the state's tax revenues, said it exceeded its first quarter collection target by 8 percent to P170.4 billion.

BIR Commissioner Joel Tan-Torres, said that the country's main tax agency has collected P54.8 billion in March, higher by 3 percent against its target of P53.4 billion for the month.

In January to March this year, the BIR is tasked to collect P157.7 billion.

Last week, Customs also said that it exceeded its collection target in March by 25 percent to P23.35 billion due to higher oil imports.

Customs, which is responsible for about a fifth of government income, has surpassed its P18.75 billion collection goal for last month.