Budget deficit swells to P165 billion in February
At A Glance
- National government's November budget deficit ballooned by 55% to P164.7 billion from P106.4 billion last year.<br>Total revenues amounted to P224 billion, higher than the P211.9 billion recorded a year ago.<br>Tax revenues increased by nine percent to P211 billion from P194 billion, with the Bureau of Internal Revenue's collection rising to P138 billion.<br>Bureau of Customs collections increased to P70.6 billion, up by 12.19 percent compared to P62.9 billion a year earlier.<br>Non-tax revenue saw significant drop from P17.2 billion in February last year to P12.7 billion.<br>The treasury's income inched up to P6.5 billion from P6.4 billion last year.<br>Government expenditures increased by 22 percent to P388.7 billion in February from P318.2 billion.<br>The February budget deficit caused the government's first two-month fiscal deficit to rise 26.65 percent to P76.7 billion from P60.6 billion in the same period last year.<br>Total expenditures at end-February grew 16 percent to P722.5 billion from P620.7 billion.<br>Revenues increased 15 percent from P560 billion to P645.8 billion.
The Marcos administration’s budget deficit expanded by half in February due to higher public spending and the slower growth in non-tax revenues, data from the Bureau of the Treasury showed.
The national government's fiscal gap amounted to P164.7 billion last month, up 55 percent compared to the P106.4 billion recorded in the same month last year.
The increase was due to “the 22.14 percent year-over-year increase in expenditures, matched with moderate revenue growth of 5.73 percent,” the treasury said.
Still, total revenues reached P224 billion, an improvement of six percent or P12.1 billion more than the revenues posted in the same period a year ago.
Of that amount, tax revenues rose by nine percent to P211 billion from P194 billion.
The Bureau of Internal Revenue (BIR) contributed P138 billion, an increase from P129 billion a year ago.
Collections from the Bureau of Customs also improved by 12.19 percent to P70.6 billion from P62.9 billion.
The collections of the BIR and Customs, the government's two main tax agencies, constituted 93 percent of the total revenue generated in February.
On the other hand, non-tax revenue hurt the increase in tax collection after it dropped by 26.21 percent from P17.2 billion in February last year to P12.7 billion.
Meanwhile, the Treasury income grew to P6.5 billion from P6.4 billion the previous year, driven by increased dividend remittances from state-owned companies.
Government expenditures also jumped by 22 percent from P318.2 billion to P388.7 billion in February.
The Treasury said the increased spending was partially attributed to the higher releases to local government units and larger disbursements recorded in the Department of Health and Department of Social Welfare and Development for their banner health and social protection programs.
Excluding interest payments, the government recorded a P116.9 billion primary deficit in February, an increase from P72.3 billion the previous year.
As a result of the February budget deficit, the government's fiscal gap for the first two months rose by 26.65 percent to P76.7 billion from P60.6 billion in the same period last year.
Total expenditures at the end of February increased by 16 percent to P722.5 billion from P620.7 billion.
Likewise, revenues grew by 15 percent from P560 billion to P645.8 billion.