The government’s budget deficit widened 20 percent in the first seven months to P205 billion from a shortfall of P171 billion a year ago, as expenditures continued to outpace revenue collection.
Data from the Bureau of Treasury showed that in July alone, the budget deficit reached P50.5 billion, slightly lower than the P50.7-billion gap in the same month last year.
The Treasury said revenue collection in July increased 14 percent to P194.6 billion, bringing the seven-month tally to P1.371 trillion, up by 8 percent from a year earlier.
Around 90.7 percent of collection last month came from tax revenues.
National government disbursements in July grew 11 percent to P245.1 billion from P220.9 billion a year ago. Spending in the first seven months also increased 9 percent to P1.576 trillion from P1.442 trillion a year earlier.
Bureau of Internal Revenue collection went up 18 percent in July to P138.1 billion. Total BIR collection in January to July rose 9 percent to P986.1 billion from P900.9 billion a year earlier.
Customs collected 13 percent more for the month over the July 2016 collection and recovered from the minimal growth attained in June. Seven-month Customs collection hit P245.3 billion, up by 11 percent from P221.5 billion a year earlier.
Total Treasury income amounted to P8.5 billion in July, down 7 percent from the previous year, mainly because of lower income from Bond Sinking Fund/ Securities Stabilization Fund, national government deposits with the Central Bank and income from other government services.
Total Treasury income in the seven-month period reached P61.2 billion, surpassing the 2017 full-year program of P58.6 billion by P23.6 billion or 63 percent.
Collection from other offices contributed P11.6 billion in July, up 4 percent from last year’s level. Revenue in the seven-month period rose 1 percent to P66.2 billion.
Interest payments accounted for 18 percent of total spending in July and amounted to P44.6 billion, up 12 percent from the previous year.
“Netting out the interest payments from expenditures, the NG recorded a P5.9 billion primary deficit for the month of July, 45 percent lower than last year’s level,” the Treasury said.
The government also posted a primary deficit of P8.8 billion in the seven-month period, reversing last year’s January to July primary surplus of P22.7 billion.