The Bureau of the Treasury (BTr) reported that the national government's budget deficit narrowed to P970.2 billion for the first nine months due to increased revenue collections outpacing spending growth.
The total fiscal deficit from January to September was also 9.08 percent below the P1.1 trillion ceiling.
In September alone, the government’s budget deficit reached P273.3 billion, an 8.9 percent increase compared to P250.9 billion a year earlier, driven by higher spending.
During the month, government revenue collection reached P299.7 billion, which is P44.2 billion more than what it collected in the same month last year.
This brought the total revenue collected at end-September to P3.3 trillion, P455.1 billion higher than the total in the same period last year.
Taxes comprised the majority (85.39 percent) of the government’s revenue at P2.8 trillion, while non-tax revenues surged to P481.1 billion.
With a 14.79 percent increase in September, the Bureau of Internal Revenue (BIR) collected P174.7 billion, raising its nine-month total to P2.1 trillion, up 12.73 percent annually but 0.98 percent below target.
From January to September, the BIR collected 73.52 percent of its P2.8 trillion full-year target, driven by increased value-added tax (VAT) collections and other domestic taxes.
Meanwhile, the Bureau of Customs (BOC) saw a 3.31 percent drop in collections to P76.3 billion, primarily due to decreased import duties from tariff cuts on certain commodities.
“Also, the decline is due to an alarming increase in smuggling activities within the year, as the current amount of the BOCs’ seized goods has already surpassed their total haul in 2023,” the BTr said in a joint statement on Oct. 23.
Despite this decline, the Customs’ total revenue for 2024 reached P690.7 billion, surpassing last year's P660.4 billion, but falling slightly short of the P693.9 billion target for the nine-month period.
Meanwhile, non-tax revenues in September rose to P46.2 billion, more than double last year's figure, contributing to a year-to-date total of P481.1 billion, which exceeds the full-year target by seven percent.
In terms of income, the BTr collected P9.9 billion, a 24.86 percent increase year-on-year, contributing to a year-to-date total of P210.2 billion.
This is also 33.02 percent higher than last year and exceeds the full-year target by 12.42 percent.
Total collections from other offices rose to P36.3 billion, more than double last year's figure, primarily due to a P30 billion payment from the Manila International Airport Authority (MIAA), leading to a year-to-date revenue of P270.9 billion, up by almost a hundred percent (96.36 percent) from last year.
In terms of spending, the total government expenditures in September rose by 13.15 percent to P572.9 billion.
This is primarily due to increased non-interest expenses and salary adjustments, with primary expenditures reaching P499.1 billion, a 14.75 percent annual growth.
Meanwhile, interest payments totaled P73.9 billion, a 3.36 percent increase annually, while year-to-date payments reached P583.3 billion, up 26.77 percent from last year.
From January to September, total government expenditures hit P4.3 trillion, an 11.56 percent increase year-on-year, surpassing the nine-month target by 1.09 percent.