The Bureau of the Treasury reported on Wednesday, July 24, that the national government's financing gap fell below ceiling in the first half of the year due to increased revenues.
From January to June 2024, the national government recorded a budget deficit of P613.9 billion, seven percent lower than the programmed gap of P661.8 billion.
According to the treasury's report, the reduction in the budget deficit was attributed to a 3.5 percent increase in government revenues.
The treasury data showed this boost was fueled by improved collections at the Bureau of Customs, as well as increased income from other government offices and the treasury bureau.
The customs bureau collected P455.5 billion, surpassing its target by three percent, while the treasury bureau exceeded its target by 27 percent, bringing in P163.9 billion.
Furthermore, other government offices contributed P168 billion by the end of June, significantly surpassing the goal of P102.2 billion.
The Treasury reported that increased dividend remittance, interest on advances from government-owned and controlled corporations, and its share of income from the Philippine Amusement and Gaming Corp. contributed significantly to the boost in revenues.
On other hand, the Bureau of Internal Revenue (BIR) missed its target P1.403 trillion by three percent after raising only P1.362 trillion.
In the first half of 2024, total revenues amounted to P2.149 trillion, exceeding the target of P2.077 trillion. Year-on-year, it rose 15 percent from P1.860 trillion.
Tax revenue for the first half of the year rose by 10 percent to P1.835 trillion from P1.668 trillion in the previous year's first half.
Additionally, non-tax revenues surged by 63 percent to P314.2 billion from P192.4 billion.
The government’s spending in the first half of the year reached P2.763 trillion, just 0.9 percent above the P2.739 trillion target. However, this amount is 14 percent higher than the P2.412 trillion spent in the previous year.
In June alone, the government recorded a budget deficit of P209.1 billion, or seven percent lower than the P225.4 billion deficit in the same month last year.
Revenues amounted to P296.5 billion, showing an 11 percent increase from the P267.3 billion in the same month last year.
Meanwhile, government spending decreased by two percent from P492.7 billion to P505.6 billion.