The government’s budget deficit increased 54 percent in October to P99.1 billion from P64.3 billion a year ago as the expansion in spending outpaced the growth in revenue collections, the Bureau of the Treasury said Friday.
“The higher deficit for the period resulted from the 22.23-percent year-over-year acceleration in government spending, outpacing the revenue growth of 14.14 percent,” the Treasury said.
This pushed the budget deficit in the first 10 months to P1.1 trillion, lower than the P1.2-trillion shortfall registered a year ago and representing 67 percent of the P1.7-trillion full-year program for 2022.
October revenue collection reached P288.9 billion, up by 14.14 percent or almost P36.0 billion from the previous year’s collection of P253.1 billion. This drove the cumulative collection in the ten-month period to P2.9 trillion, up 18.31 percent from P2.5 trillion last year.
Tax collections accounted for 90 percent or P2.6 trillion of the total, with non-tax revenue contributing P299.5 billion.
The Bureau of Internal Revenue collected P186.8 billion (net of P20.0 million tax refund) for October, up 15.20 percent or P24.6 billion year-on-year. The BIR’s cumulative haul of P1.9 trillion showed a 12.56-percent (P214.2 billion) improvement over the same period last year.
The Bureau of Customs added P75.1 billion in October, exceeding the previous year’s outturn of P55.5 billion by 35.16 percent or almost P20 billion. The aggregate collection of P713.5 billion in the ten-month period was also 35.81 percent or P188.2 billion better than the 2021 level.
The Bureau of the Treasury posted a double-digit increase of 47.24 percent or P4.2 billion in its October income totaling P13.2 billion.
Government disbursements accelerated to P387.9 billion in October from P317.4 billion a year ago, driven by higher national tax allotment of local government units and subsidy releases for programs implemented by government corporations including National Health Insurance Program under the PhilHealth, Irrigation Systems Restoration Program and Irrigation Systems Development Program of the National Irrigation Administration, Comprehensive and Integrated Housing Program of the National Housing Authority and Missionary Electrification Program under the National Power Corp.
Disbursements for the social protection programs of the Department of Social Welfare and Development and road infrastructure projects of the Department of Public Works and Highways also contributed to the higher October spending.
Government spending hit P4.1 trillion in the first 10 months, representing 82 percent of the P5.0 trillion fiscal year 2022 program, and was up by 9.87 percent or P364.5 billion from the actual spending of P3.7 trillion a year ago.
The primary expenditures of P354.7 billion accounted for 91 percent of the total monthly spending and went up 24.11 percent or P68.9 billion from last year’s amount. The cumulative figure rose 9.10 percent (P302.2 billion) to P3.6 trillion.
Total interest payment reached P33.2 billion in October, up 5.23 percent or P1.6 billion year-on-year. This resulted in a higher cumulative interest payment of P433.2 billion for the 10-month period versus last year’s P370.9 billion.
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