The national government's budget deficit declined in the first three-months of the year after revenues grew by double-digits, outpacing the increase in public spending, the Bureau of the Treasury reported.
On Wednesday, April 27, the Treasury bureau showed that the government incurred a P316.8 billion fiscal gap from January to March 2022, lower by one percent compared with P321.5 billion in the same period last year.
In March alone, the government registered a two percent drop in budget deficit to P187.7 billion from P191.4 billion in the previous year.
According to the Treasury, the narrowing financing gap was driven by increased revenue haul amounting to P784.4 billion from P696.5 billion.
In the first quarter, the Bureau of Internal Revenue (BIR) collected P502.8 billion, up seven percent from P469.7 billion, while the Bureau of Customs registered 27 percent jump in revenues to P188.6 billion from P149.2 billion.
Government's non-tax collections also accelerated by 88 percent to P49.8 billion from P26.5 billion during the quarter.
Moreover, income of other offices, which includes privatization proceeds and fees and charges, booked P38.4 billion, 16 percent higher compared with a year ago.
In addition, the Bureau of the Treasury income reached P48.7 billion, beating the previous year’s P39.3 billion by 24 percent.
The increase was propelled by higher dividend remittances, along with higher investment income, guarantee fees as well as share from gaming revenues income.
The 12 percent improvement in government revenues outpaced the eight percent rise in public spending, which stood at P1.101 trillion in the first quarter from P1.018 trillion.
The Treasury data showed that government revenues and expenditures in March reached P293.9 billion and P481.5 billion, respectively.
The government registered a primary deficit of P167.5 billion in the first three-months, lower by 14 percent compared with P195.6 billion in the previous year.
In 2022, the Development Budget Coordination Committee, an inter-agency body that sets the country's macroeconomic targets, has programmed a P1.65 trillion budget deficit, equivalent to 7.7 percent of the country’s economy.