Strong revenues halve July's budget deficit
At A Glance
- The national government's budget deficit in July was nearly halved to P47.8 billion due to improved tax and non-tax collections.<br>Government revenues reached P411.7 billion, a 33 percent increase compared to the previous year. The Bureau of Internal Revenue contributed P273.1 billion, while the Bureau of Customs accounted for P73.1 billion.<br>Government expenditures grew by 16 percent, primarily due to increased disbursements in social protection programs, health initiatives, agriculture projects, and infrastructure development.<br>Cumulative public spending for the year rose by 2.6 percent in the first seven months.<br>The budget deficit ceiling for 2023 is set at P1.499 trillion, equivalent to 6.1 percent of the country's GDP.<br> As of July 2023, the financing gap stood at P599.5 billion, accounting for approximately 39.9 percent of the government's full-year program.
The national government's budget deficit was nearly halved in July owing to strong revenue collection, data from the Bureau of the Treasury showed.
The fiscal deficit, which arises when government expenditures exceed revenues, amounted to P47.8 billion in July 2023, a 45 percent decrease compared to P86.8 billion in the same month last year.
The Treasury bureau attributed the significant decline to improved tax and non-tax collections.
Government revenues reached P411.7 billion during the month, a 33 percent rise compared to P308.6 billion a year ago.
Out of this amount, the Bureau of Internal Revenue (BIR) contributed P273.1 billion, while the Bureau of Customs accounted for P73.1 billion.
The collections of the BIR and Customs, the government's two main tax agencies, constituted 84.1 percent of the total revenue generated in July.
Meanwhile, the Treasury income surged to P50.8 billion from P13.4 billion the previous year, driven by increased dividend remittances from state-owned companies.
According to the Treasury, this monthly collection is the highest for the year, enabling the bureau to surpass its full-year target of P58.3 billion.
The revenue collected in July brought the government's total for the first seven months to P2.272 trillion, an 11 percent increase from P2.036 trillion in the same period last year.
On the other hand, government expenditures grew 16 percent in July this year to P459.5 billion compared to P395.4 billion in the same month of 2022.
Government expenditures jumped due to higher disbursements in social protection programs, health initiatives, agriculture projects, and infrastructure development, the Treasury said.
In July, interest payments reached P63.6 billion, higher by 22 percent than the previous year's P52.1 billion.
Excluding interest payments, the government recorded a P15.7 billion primary surplus, reversing the P34.7 billion primary deficit incurred in July last year.
Cumulatively, public spending increased by 2.6 percent to P2.871 trillion year-to-date, up from P2.797 trillion in the same period last year.
The Marcos administration has set a budget deficit ceiling of P1.499 trillion for 2023, equivalent to 6.1 percent of the country's gross domestic product.
As of July 2023, the financing gap stood at P599.5 billion, accounting for only 39.9 percent of the national government's full-year program. (Xander Dave Ceballos)