The government incurred a budget deficit of P1.6 trillion in 2022, down 3.35 percent from the P1.7-trillion shortfall in 2021 as revenue collection outpaced expenditures.
The Bureau of the Treasury said Wednesday the 2022 budget shortfall was within the P1.7-trillion full-year program.
“The fiscal outturn was driven by revenue growth of 17.97 percent, outpacing the 10.35-percent expansion in government spending,” the Treasury said in a statement.
The 2022 figure was equivalent to 7.33 percent of the gross domestic product, down from 8.60 percent in 2021 and below the 7.58 percent program.
Data showed the budget gap in December 2022 reached P378.4 billion, 11.94 percent or P40.4 billion higher than the P338.0 billion recorded a year ago, as the increase in public expenditures (P77.2 billion) outweighed the increase in government receipts (P36.9 billion).
Revenue collection in 2022 reached P3.5 trillion, up 17.97 percent or P540 billion from the 2021 outcome and was 7.31 percent or P241.4 billion better than the P3.3 trillion programmed for the year.
“Ninety-one percent or P3.2 trillion of the total was derived from tax revenues, exceeding the target by 2.57 percent and growing by 17.41 percent year-on-year. Non-tax collections comprised the balance of 9 percent while also registering a 23.74 percent year-on-year growth and surpassing the 2022 program by almost 98 percent or P160.7 billion,” the Treasury said.
The December collection of P268.2 billion was also higher than the previous year’s tally by 15.95 percent or P36.9 billion.
Revenue effort in 2022 improved to 16.10 percent from 15.48 percent in 2021 and better than the 15.17 percent program. Tax effort also grew to 14.62 percent from 14.13 percent a year ago and was above the 14.42 percent target.
The Bureau of Internal Revenue improved its overall collection by 12.39 percent or P257.5 billion to P2.3 trillion last year. The P179.3 billion raised by the agency in December went up by P16.9 billion or 10.42 percent from the December 2021 level.
The 2022 collection was short by 2.38 percent or P56.9 billion of the P2.4 trillion full-year program.
Collections by the Bureau of Customs climbed to P862.4 billion (net of P4.8 billion tax refund) in 2022, outperforming the P643.6 billion raised in 2021 by 34.01 percent or P218.9 billion, and 19.53 percent or P140.9 billion above the P721.5 billion 2022 target.
“BOC’s robust revenue performance was supported by efforts to ensure the recovery of deficient duties and taxes, improve tax compliance, tariffs on rice imports, and public auctions of overstaying cargo. The Bureau’s December 2022 revenue of P73.2 billion was also up by 21.40 percent or P12.9 billion over the previous year’s comparable figure,” it said.
Income collected and generated by the Bureau of the Treasury for the year reached P154.8 billion, exceeding the P63.4 billion full-year program by P91.3 billion and was 23.48 percent or P29.4 billion more than the 2021 revenue performance.
“BTR’s robust collection was largely driven by higher remittances of dividends on shares of stocks, income from Bond Sinking Fund investments, and interest on NG [national government] deposits. The P6.6-billion income for December similarly indicates a 38.31 percent or P1.8 billion year-on-year expansion,” the Treasury said.
Government disbursements in 2022 expanded to P5.2 trillion from P4.7 trillion in 2021.
“The strong 10.35-percent year-on-year growth, equivalent to P484.0 billion increase, was driven by the larger national tax allotment shares of local government units in line with the first year of implementation of the Mandanas Ruling; higher capital expenditures mainly from road and transport infrastructure program, and defense modernization projects; personnel services expenses owing to the implementation of the third tranche of Salary Standardization Law V and release of other personnel benefits; as well as interest payments,” it said.
Expenditures in December amounted to P646.6 billion, 13.57 percent or P77.2 billion higher than the 2021 spending performance.