The Marcos administration registered a reduction in the budget deficit last year, with revenues growing significantly faster than expenditures, data from the Bureau of the Treasury showed.
In 2023, the national government's fiscal deficit stood at P1.512 trillion, a 6.3 percent decrease from the previous year's P1.614 trillion.
The year-end budget shortfall slightly exceeded the P1.499 trillion target set for the year by 0.85 percent.
According to the Teasury, the 2023 budget deficit equated to 6.2 percent of the gross domestic product (GDP), slightly surpassing the 6.1 percent target but notably lower than the 7.3 percent ratio registered in 2022.
“[It is] indicating progress of fiscal consolidation,” the bureau said in a statement.
The Treasury report attributed the year-on-year decline to stronger revenue growth, which surpassed target and helped offset the slightly higher-than-expected public spending.
Revenues for last year amounted to P3.824 trillion, an eight percent growth compared to the P3.545 trillion recorded in 2022, and surpassing the P3.729 trillion target.
The Bureau of Internal Revenue (BIR) contributed P2.517 trillion to the total, which ios eight percent higher from P2.335 trillion in the previous year. Meanwhile, the Bureau of Customs' collections grew by 2.4 percent to P883.3 billion from P862.4 billion.
On the other hand, the Treasury bureau posted a substantial revenue growth of 47 percent from P154.8 billion to P227.6 billion.
From January to December 2023, the national government's expenditures climbed to P5.336 trillion, or a three percent growth from the previous year's P5.159 trillion.
This full-year spending exceeded the Marcos administration's target of P5.228 trillion by two percent.
In December alone, the government’s budget deficit increased by six percent to P401 billion form P378.4 billion.
Revenues in the final month of the year totaled P260.1 billion, while expenditures reached P661 billion.