The government’s budget deficit narrowed to P551.7 billion in the first half of 2023 on higher revenue collection and lower-than-expected expenditures, data from the Bureau of the Treasury showed Friday.
It was 18.17 percent lower than the shortfall of P674.2 billion registered a year ago and 28.49 percent below the P771.5 billion mid-year deficit program, the Treasury said.
The Treasury said budget deficit rose 4.58 percent in June to P225.4 billion from P215.5-billion in the same month last year following a 7.91-percent decline in revenues and 2.59-percent drop in expenditures.
It said despite the drop in revenue collections in June, the total in the first six months reached P1.9 trillion, up by 7.68 percent from a year ago. It also surpassed the program by 2.72 percent or P49.2 billion.
About 89 percent of the cumulative collections were generated from taxes, while the balance represented non-tax collections.
The Bureau of Internal Revenue saw its collection fall 5.07 percent or P8.8 billion in June to P164.7 billion. Its overall collection in the first half grew 7.65 percent or P86.7 billion year-on-year to P1.2 trillion.
Customs’ collections fell 2.72 percent or P2.71 billion in June to P74.1 billion, but its cumulative performance climbed 9.26 percent or P36.7 billion to P433.4 billion.
The Treasury generated P10.8 billion in June and P93.0 billion in the first six months.
Meanwhile, government expenditures decreased 2.59 percent in June to P492.7 billion because of lower national tax allotment shares of local government units and outstanding checks, or those issued but not yet presented for payment or enchashment by suppliers or creditors in various agencies.
Total disbursements in the first half reached P2.4 trillion, up by 0.42 percent or P10.1 billion year-on-year but short of the P2.6 trillion first-half program by 6.60 percent or P170.5 billion.
This was mainly to substantial outstanding checks recorded as of end-June 2023 amounting to P124.1 billion per consolidated bank reports, according to the Treasury.
“Moreover, the lower-than-programmed interest payments; ongoing implementation of some social protection programs, particularly the registration and validation of beneficiaries; as well as billing concerns from suppliers/creditors, such as late submissions of billing statements and compliance with documentary requirements have affected the spending outturn for the period,” the Treasury said.