The government’s budget deficit widened by 40 percent in September 2023 to P250.9 billion from P179.8 billion a year ago on a double-digit decline in revenue collections, the Bureau of the Treasury said Wednesday.
“The fiscal outturn for the period was underpinned by an 8.06-percent year-over-year acceleration in expenditures, coupled with an 11.57-percent decrease in government receipts,” the Treasury said in a statement.
This brought the cumulative nine-month fiscal deficit to P983.5 billion, down by 2.89 percent, or P29.3 billion, year-on-year and 11.11 percent, or P123.0 billion, lower than the P1.1-trillion target for the period.
“The year-to-date deficit figure is only 66 percent of the P1.5 trillion full-year program due to higher revenue and lower expenditure performance than programmed for the period,” the Treasury said.
Revenues in September fell to P255.4 billion from the P288.8 billion raised a year ago. Despite the lower take during the month, nine-month collection reached P2.8 trillion, accounting for 76.10 percent of the P3.7 trillion full-year program and representing a 6.79-percent or P180.4 billion increase over a year ago.
This also surpassed the nine-month target by 2.98 percent or P82.1 billion.
Data showed that of the total collection, 89.55 percent (P2.5 trillion) was generated through taxes, while the balance of 10.45 percent came from non-tax sources which improved 6.38 percent and 10.47 percent, respectively.
The Bureau of Internal Revenue contributed P152.2 billion for September, 12.36 percent or P21.5 billion lower on a year-on-year basis. The agency still managed to grow its cumulative collection to P1.9 trillion, outperforming last year’s comparable outturn by 7.25 percent (P125.5 billion) but missed the P1.9 trillion target by 3.89 percent or P75.3 billion.
The BIR already raised 70 percent of the P2.6 trillion programmed for fiscal year 2023.
Customs’ September collection amounted to P78.9 billion, slightly lower than a year ago. The agency’s cumulative collection for the nine-month period showed a 3.43-percent, or P21.9-billion, improvement from the previous year’s achievement.
The agency also exceeded the nine-month program by 2.52 percent or P16.2 billion while achieving 76 percent of the 2023 target.
Income collected and generated by the Bureau of the Treasury in September rose 8.79 percent year-on-year to P7.9 billion. This was largely due to higher interest earnings on national government deposits and share from income of the Philippine Amusement and Gaming Corp.
This drove the Treasury’s nine-month collections to P158.0 billion, 21.84 percent or P28.3 billion higher than a year ago and a 194.37-percent or P104.4 billion overachievement of the P53.7 billion program for the period.
Meanwhile, government expenditures amounted to P506.3 billion in September, 8.06 percent or P37.8 billion higher than P468.6 billion recorded in the same period in 2022.
“This was mainly attributed to the implementation of banner social protection and health programs of the Department of Social Welfare and Development, and Department of Health, respectively, as well as capital outlay projects of the Department of Public Works and Highways,” the Treasury said.