The government’s budget deficit widened by 55.64 percent or P21.8 billion in November to P60.9 billion from the P39.1-billion shortfall a year ago, on the back of strong government spending, according to the Bureau of the Treasury.
Data showed government spending jumped 22.36 percent in November to P365.6 billion, while revenue collection improved 17.4 percent to P304.7 billion.
The figure brought the fiscal deficit in the first 11 months to P409.1 billion, or P68.1 billion lower than the P477.2-billion gap in the same period last year.
“The catch-up performance in November boosted spending for the first eleven-months to P3.303 trillion, lifting the cumulative disbursement growth to 6.73 percent year-on-year or P208.2 billion,” the Treasury said.
“Primary expenditures [net of interest payments] was responsible for much of the increase as non-interest spending jumped 27.06 percent YoY to P348.3 billion. YTD primary expenditure of P2.971 trillion was likewise firm at 7.08 percent above last year’s level,” it said.
The Treasury said revenue collection grew 10.55 percent, or P276.2billion, in the 11-month period to P2.894 trillion, with taxes making up 93.39 percent of the total collection.
The Bureau of Internal Revenue collected P232.1 billion in November, up by 20.83 percent from a year ago, marking BIR’s best growth performance for the year. Cumulative collection by the agency from January to November reached P2.012 trillion, higher by 11.77 percent or P211.9 billion than year’s 11-month total.
Collections by the Bureau of Customs amounted to P50.8 billion in November, with P374 million in tax refunds. The resulting net collection of P50.4 billion was up by 5.24 percent or P2.5 billion compared to last year’s outcome. This brought the agency’s 11-month collection to P578.1 billion, up by 7.36 percent or P39.6 billion over the comparable figures in 2018.
“Total income generated and collected by the Bureau of the Treasury expanded by 16.30 percent year-on-year to P5.5 billion due largely to higher income from BSF/SSF investments, NG dividends from shares of stocks and share from PAGCOR income,” it said.
This drove the Treasury’s year-to-date income to P134.7 billion, up by 30.03 percent or P31.1 billion from P103.6 billion raised in the first 11 months of 2018. The BTR said that as of end-November, it had already surpassed its P73.9-billion full-year target by 82.31 percent or P60.8 billion.
Non-tax revenue from other offices posted a growth of 14.86 percent to P14.6 billion. Meanwhile, collections as of end-November went down by 4.87 percent to P147.0 billion.
Data showed that debt interest payments totaled P17.3 billion in November, down 29.90 percent from the previous year because of matured bonds and the receipt of settlement premia from the re-issuance of outstanding series. The resulting cumulative interest payments of P331.8 billion grew by 3.67 percent or P11.7 billion against the amount paid in last year’s 11-month period.
“For the month, the government registered a primary deficit of P43.6 billion, more than thrice the amount recorded in November 2018. YTD primary deficit, on the other hand, went down 50.78 percent to P77.4 billion, underscoring the general slowdown in non-interest spending which occurred primarily on the first half of the year owing to the delayed passage of the budget compounded by the election ban,” the Treasury said.