DBCC revises upward revenue outlook for 2023
At A Glance
- The Development Budget Coordination Committee (DBCC) raised the government's revenue outlook for this year due to better-than-expected collections and income from the customs and the treasury bureaus.<br>Total revenues are expected to reach P3.847 trillion this year, up by three percent from the earlier forecast of P3.729 trillion.<br>To meet the revenue target, the government needs to raise P623 billion in November and December.<br>The revenue collected by the end of October exceeded the target for the period by 5.2 percent, driven by strong collections from the Bureau of Custom and income from the Bureau of the Treasury, among other sources.<br>The inter-agency body also adjusted its target for next year from P4.201 trillion to P4.235 trillion.<br>Finance Secretary Benjamin Diokno emphasized the importance of revenue collection in achieving the government's targets, including reducing the debt-to-GDP ratio, decreasing the deficit-to-GDP ratio, and reducing poverty incidence to single digits.<br>The Marcos administration's budget deficit for January to December stood at P1.018 trillion, down 8.45 percent compared to P1.11 trillion in the same period last year.<br>The 10-month budget deficit was only about 68.16 percent of the P1.493-trillion ceiling set by the government for the entire 2023.
The Development Budget Coordination Committee (DBCC) has increased its government revenue projection for this year due to stronger-than-expected collections and higher income from the customs and treasury bureaus.
The DBCC, an interagency body responsible for setting the government’s macroeconomic assumptions, now expects that total revenues for this year will amount to P3.847 trillion, higher by three percent than its earlier projection of P3.729 trillion.
As of the end of October, the total revenue had reached P3.223 trillion, which is 83.8 percent of the DBCC's revised estimate. In order to achieve the new full-year goal, the government must generate P623 billion in November and December.
The revenue collected at end-October already exceeded the target for the 10-month period by 5.2 percent, propelled by strong collections from the Bureau of Customs and income from the Bureau of the Treasury, among other sources, the DBCC said.
In addition to the adjustments made for 2023, the inter-agency body also slightly raised by 0.8 percent its target for next year from P4.201 trillion to P4.235 trillion.
Earlier, Finance Secretary Benjamin Diokno underscored the importance of revenue collection in meeting the government's objectives, specifically President Marcos' three key goals by the end of the administration's term.
Diokno outlined these as reducing the debt-to-gross domestic product (GDP) ratio to 51 percent, decreasing the deficit-to-GDP ratio to three percent, and lowering poverty incidence to single digits.
"Maintaining a healthy level of revenues is vital to the attainment of each of these targets," he said.
From January to October, the budget deficit of the Marcos administration amounted to P1.018 trillion, an 8.45 percent decrease from the P1.11 trillion recorded in the same period the previous year.
The deficit for the first 10 months only reached approximately 68.16 percent of the P1.493-trillion ceiling set by the government for the entire 2023.
A budget deficit occurs when a government's spending exceeds its revenue during a specific period of time.
The shortfall leads to the accumulation of debt, as the government must borrow money to cover the difference between its expenditures and its revenues.