THE national government’s budget deficit in July was slashed by nearly 45 percent to P47.8 billion from P86.8 billion on the back of higher revenue collections, according to the Bureau of the Treasury (BTr).
In its latest report, the Treasury said the rise in state revenue collections in July continued to outpace the increase in its expenditures during the reference period.
“The year-to-date [YTD] fiscal performance resulted in a cumulative budget gap of P599.5 billion, also down by 21.22 percent or P161.5 billion compared to the P761.0-billion shortfall registered in the first seven months of the previous year,” the Treasury said on Thursday.
The Treasury noted that the national government’s (NG) July revenue collection rose by a third to P411.7 billion from P308.6 billion in the same month of last year.
The Treasury attributed the P103.1-billion increase in state revenues to higher tax and non-tax collections.
Tax collections in July rose by 23.18 percent year-on-year to P348.5 billion from P282.9 billion, Treasury data showed. The more than a fifth increase in July collections raised the state’s YTD collection to P2.271 trillion, 11.58 percent over last year’s P2.036 trillion.
“Taxes comprising the biggest portion [88.74 percent] of total revenue expanded by 10.52 percent with the remaining balance of 11.26 percent [P255.8 billion] coming from non-tax revenues, which also improved by 20.72 percent,” the Treasury said.
Collections (net of refund) made by the Bureau of Internal Revenue (BIR) accounted for the bulk of the state’s tax revenues in July as it reached P273.1 billion.
The amount was 38.37 percent higher than the P197.4 billion that BIR collected in July 2022.
“This growth translated into a YTD improvement of 12.21 percent or P162.4 billion, bringing the agency’s total collection to P1.5 trillion,” the Treasury said.
The Bureau of Customs (BOC), meanwhile, registered a 12.61-percent decline in its July collections that settled at P73.1 billion from P83.6 billion last year.
“Nevertheless, BOC still managed to improve its cumulative collection to P506.5 billion for the [January-July] period, growing by 5.45 percent or P26.2 billion from the previous year’s accomplishment of P480.3 billion,” the Treasury said.
Non-tax revenues during the period more than doubled to P63.2 billion from P25.7 billion, according to the Treasury. Bulk of the amount or about P50.8 billion came from the Treasury.
The Treasury’s non-tax revenues in July was 279.63 percent higher than the P13.4 billion it collected last year.
“BTr’s collection for the 7-month period consequently rose to P143.8 billion, 22.40 percent or P26.3 billion higher than the 2022 comparable performance and has already exceeded the full-year target of P58.3 billion largely due to higher dividend remittances, income from managed funds and government deposits, as well as NG share from Pagcor profit,” it said.
Disbursements
The state’s disbursements in July reached P459.5 billion, 16.22 percent higher than the P395.4 billion in the same month of last year, according to the Treasury.
The Treasury attributed the increase to higher expenditures recorded in “the Department of Social Welfare and Development for its social protection programs, and in the Department of Health and Department of Agriculture for their banner health and agriculture programs, respectively.”
“Spending in July also expanded on the back of significant infrastructure outlays of the Department of Public Works and Highways for its road network development program and the Department of Transportation for rail transport projects,” the Treasury added.
The Treasury said the national government’s disbursements in the January-to-July period rose by 2.66 percent to P2.871 trillion from P2.797 trillion in the same period of last year.
“Primary expenditures reached P396.0 billion, indicating a 15.35 percent or P52.7 billion [year-on-year] improvement. This offset the P15.1 billion decrease in [the first half] 2023 allowing primary expenditures of P2.5 trillion as of end-July to grow by 1.51 percent from last year’s level,” the Treasury said.
“July Interest Payments (IP) amounted to P63.6 billion compared to last year’s P52.1 billion, 22.0 percent (P11.5 billion) higher [year-on-year]. The resulting YTD IP likewise went up by 11.87 percent (P36.7 billion) from the previous year to P346.0 billion,” it added.
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