The government’s budget deficit increased 19.5 percent in the first seven months to P837.3 billion from P700.6 billion a year ago, on increased spending for COVID-19 response, data from the Treasury show.
The budget deficit amounted to P121.2 billion in July, although this was lower than the P140.2-billion shortfall registered in the same month last year, as revenues grew 9.21 percent while expenditures rose 0.69 percent.
Revenue collections reached P256.1 billion in July, exceeding last year’s outturn by 9.21 percent or P21.6 billion. The resulting cumulative collection of P1.746 trillion in the first seven months was 3.47 higher than P1.687 trillion a year earlier.
“Tax revenue grew by 10.17 percent year-over-year and comprised 90 percent of the year-to-date total collection, while non-tax sources made up the remaining 10 percent or P173.2 billion,” the Treasury said.
The Bureau of Internal Revenue’s collection in July increased 7.45 percent to P170.8 billion. BIR’s uptake for the first seven months hit P1.202 trillion, up 7.82 percent or P87.2 billion from P1.115 trillion a year ago.
Customs net collections amounted to P57.2 billion in July, up by 14.76 percent from a year ago. This raised the bureaus’ revenue in the seven-month period to P358.9 billion, representing an increase of 18.49 percent from last year’s outcome of P302.9 billion.
The Bureau of the Treasury’s income in July jumped 78 percent to P13.6 billion from a year ago. “The significant increase for the period was largely due to higher dividend remittances, national government share from PAGCOR and interest income from government deposits,” the Treasury said.
It said the agency’s total revenue as of end-July amounted to P95.2 billion, surpassing the original full-year program of P74.7 billion by 27.52 percent, driven by higher dividend collections and income from government deposits.
The figure, however, was 50.10 percent below the P190.9 billion raised in 2020 because of the base effect of higher income and dividend remittances last year in line with the provisions of Republic Act No. 11469 or the Bayanihan I law.
Government spending in July amounted to P377.3 billion, 0.69 percent or P2.6 billion higher than last year’s P374.7 billion.
“The modest increase can be attributed to the higher personnel services expenditures and infrastructure outlays, but were partially offset by the one-off Social Amelioration Program of the Department of Social Welfare and Development whose implementation of the second tranche was still ongoing in July last year,” it said.
“The timing of subsidy releases to the Philippine Health Insurance Corp. and National Housing Authority also weighed down on the growth of disbursements for the period,” it said.
This resulted in a cumulative expenditure of P2.583 trillion in the first seven months, surpassing the P2.388 trillion disbursements in the same period last year by 8.18 percent or P195.3 billion.
Primary expenditures in July inched up to P318.2 billion from the previous year’s P315.3 billion. Total primary spending as of end-July reached P2.316 trillion, up by 8.16 percent or P174.8 billion from a year earlier.
Interest payments amounted to P59.0 billion in July, pacing last year’s level as the increase in domestic interest payments due to Treasury bonds/bills issuance was offset by lower foreign payments due to matured global bonds.
Total interest payments in the seven-month period amounted to P267.6 billion, up by 8.30 percent year-on-year.