Gov’t sets out to trim budget deficit in Q2

Published June 8, 2021, 3:20 PM

by Chino S. Leyco

The national government plans to trim the budget deficit in the third- and fourth-quarters of the year after ramping up spending in the second-quarter, data from the Department of Budget and Management (DBM) showed.

Under the 2021 fiscal program released by the DBM on Tuesday, June 8, the government hopes to cap the fiscal deficit in the second-quarter at P696.49 billion, while at P407.79 billion for the third-quarter and at 429.88 billion in the final three-months.

The government’s remaining per quarter program is way above the P321.47 billion actual reported for the first three-months of the year.

Disbursements are expected to remain above the P1 trillion level in the last three-quarters of 2021.

From April to June, the government expects expenditures to reach P1.421 trillion, while P1.122 trillion is programmed for the third-quarter and P1.174 trillion for the last-quarter.

In the quarter ending March, public spending amounted to only P1.018 trillion.

Meanwhile, the government has set a revenue collection target of 725.36 billion for the second-quarter, up from P696.45 billion during the January to March period.

Of that total expected revenues in April to June, tax collectors are tasked to raise P694.08 billion, while non-tax revenue generating agencies are projected to contribute P31.28 billion.

Revenues from July to September, however, are expected to slowdown compared with the previous quarter, hitting P714.77 billion. But this amount is projected to accelerate to P745 billion in the last quarter of 2021.

The government has set a tax revenue program of P694.08 billion, P681.5 billion and P713.15 billion for the second-, third-, and four-quarters, respectively.

Non-tax revenues, on the other hand, are seen to amount P31.28 billion during the current quarter, P33.27 billion in the third-quarter and P31.272 billion in the last three-months of the year.

For the full year, the government aims to keep its budget deficit at 1.855 trillion, equivalent to 9.3 percent of the projected gross domestic product of the country in 2021.