The Philippines reported a budget deficit totaling P54.29 billion in June which was 65 percent higher than the shortfall in May when this stood at only P32.87 billion. This allowed the budget imbalance to widen to P193.02 billion in the first half of the year.

According to the Bureau of the Treasury (BTr), the main collection arms of government posted collections totaling P224.20 billion in June alone or 13 percent higher than in May when this totaled only P258.99 billion.

As a result, six-month revenues aggregated P1.41 trillion made up of tax revenues totaling P1.25 trillion and non-tax revenues of another P155.8 billion.

Of the tax revenues collected over six months this year, the bulk or P964.51 billion was accounted for by the Bureau of Internal Revenue and only P279.39 billion was reported by the Bureau of Customs.

The non-tax revenues for the period, composed of the income generated by the BTr, fees and charges, asset sale proceeds of various government property and other revenues aggregated P155.81 billion.

On government expenses, the BTr reported revenues totaling P278.49 billion in June alone, lower than disbursements totaling P291.87 billion in May that in addition to disbursements and other expenses, brought the six-month expenses to P1.60 trillion.

The disbursements for the period included allotment to the various local government units aggregating P302.66 billion for six months, interest payments of another P165.51 billion and tax expenditures of another P4.02 billion.

Subsidy channeled into previously identified public sector entities for the period totaled P67.74 billion, equity expenses of P2.587 billion and net lending of another P1.32 billion. National Government (NG) disbursement aggregating P1.06 trillion rounded up NG expenses and brought the six-month figure to P1.60 trillion.

As a consequence of these developments, the NG financed the budgetary shortfall by borrowing P304.17 billion over six months from domestic creditors, mostly the banks, and the equivalent of P75.82 billion in local currency from foreign lenders.

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