Budget deficit closes in on program

THE GOVERNMENT’S fiscal deficit closed in on the program in the nine months to September, according to latest cash operations data from the Bureau of the Treasury (BTr) on Monday that showed state spending growth continuing to outpace an increase in revenues.
The budget shortfall in the January-September period grew 78% to P378.2 billion from P213.1 billion in 2017’s comparable period, now just five percent short of a P396.6-billion program for the past nine months. That compared to a P193-billion first-half deficit that was 27% below the P264.3 billion program for those six months.
Overall revenues grew 17% to P2.11 trillion in the nine months to September from P1.8 trillion in the comparable period last year, topping a P2.03-trillion target by four percent.
Taxes accounted for about 90% at P1.9 trillion of revenues, up 16% from last year, but was a percent short of a P1.91-trillion target. Of that amount, the Bureau of Internal Revenue (BIR) raked in P1.44 trillion, up 11% year on year, but two percent short of the P1.47-trillion target. The Bureau of Customs (BoC) collected P434.6 billion, up 34% and exceeding its P417.5-billion target by four percent. Other office contributed P16.7 billion, up five percent from last year.
Non-tax revenues accounted for a tenth of overall revenues in the January-September period, growing 33% to P216.1 billion and 72% more than the P125.5-billion goal. The BTr generated P90.5 billion of that amount, 21% bigger than a year ago and double its target for the period, while other offices raised P125.5 billion, a 43% jump from last year.
The same comparable nine months saw state disbursements growing 24% to P2.49 trillion from P2.01 trillion, three percent more than the P2.43-trillion spending goal. “Other” expenditures — which include infrastructure spending and other capital outlays — accounted for 89% of the total at P2.218 trillion, up 26% from a year ago and three percent past a P2.146-trillion goal. Interest payments stood at P271.3 billion, nine percent bigger than last year but three percent short of the P281-billion goal.
September alone saw the fiscal deficit more than double to P96.2 billion from P36.9 billion.
Overall revenue growth increased by just a percent to P202.4 billion from P200.1 billion, due to high base-effects from Mighty Corp.’s partial tax settlements last year amounting to P17.6 billion, according to the BTr.
Tax revenues that month were flat at P183.4 billion. The BIR collected P130.6 billion, eight percent less than a year ago. Excluding Mighty’s 2017 tax settlement, BIR collections would have gone up by five percent year on year. BoC collections grew 27% annually to P51.1 billion. Tax revenues from other offices grew 23% to P1.8 billion.
Non-tax revenues grew 12% to P18.9 billion, with the BTr generating P7.2 billion of that amount, down two percent from last year. Other offices generated P11.7 billion, 22% up from last year.
Expenditures, on the other hand, grew 26% to P298.6 billion in September from P237 billion in the same month in 2017. “Other” expenses surged 26% to P265.9 billion from P210.6 billion, while interest payments grew 24% to P32.7 billion from P26.4 billion. — Elijah Joseph C. Tubayan