The Marcos administration’s budget deficit narrowed significantly in August due to robust revenue growth and a slight contraction in public spending, the Bureau of the Treasury reported.
In a statement, the Treasury said the national government incurred a fiscal deficit of P54.2 billion in August this year, a 59.24 percent decline compared to the P133 billion shortfall recorded a year ago.
According to the Treasury, this improvement was driven by a 24.4 percent increase in government receipts and a minimal 0.68 percent decrease in government expenditures.
In the first eight months of 2024, the budget deficit also narrowed by 4.8 percent to P697 billion from P732.5 billion in the previous year.
This represents 46.95 percent of the P1.5 trillion full-year program for 2024.
Government revenue collections surged by 24.4 percent to P386.3 billion in August, driven primarily by strong non-tax collections.
The cumulative collections for the year reached P2.99 trillion, surpassing the previous year's total of P2.58 trillion by 15.91 percent.
Taxes accounted for the largest portion of the collections, contributing P2.6 trillion.
Non-tax sources, such as fees, charges, and grants, generated P434.9 billion, representing a significant 58.66 percent increase from the previous year.
Meanwhile, the government disbursed P440.5 billion in August, slightly lower than the P443.6 billion spent in the same period last year.
The Treasury said this was partially due to lower subsidy releases to government corporations and outstanding checks in various departments.
Despite the slight decrease in August, cumulative disbursements for the year rose by 11.32 percent to P3.7 trillion.
Net of interest payments, the government’s primary deficit (excluding interest payments) narrowed to P1.4 billion in August from P90.3 billion a year ago.
This indicates that the government generated more revenue than it spent on essential services. (Derco Rosal)