November budget deficit widens

The budget shortfall delivered a reversal in year-to-date deficit reaching P409.1 billion versus underperformance of only P68.1 billion in the same period last year.

Catch-up spending by the National Government (NG) helped widen the budget deficit in November as expenditures outpaced revenues, latest data from the Bureau of Treasury (BTr) show.

“(NG) disbursements quickened further in November, posting a growth of 22.36 percent and outpacing the revenue expansion of 17.35 percent,” the BTr said.

“This resulted in a P60.9 billion fiscal deficit in November, wider by P21.8 billion against last year’s shortfall,” it added.

According to the Treasury, the budget shortfall delivered a reversal in year-to-date deficit reaching P409.1 billion versus underperformance of only P68.1 billion in the same period last year.

Government disbursement rebounded in November at P365.6 billion behind a 22.36 percent or P66.8 billion increase over last year’s level, the BTr said.

The catch-up performance in November boosted spending for the first eleven-months to P3,303.3 billion, lifting the cumulative disbursement growth to 6.73 percent year-on-year or P208.2 billion, it added.

Interest payments (IP) in November totaled P17.3 billion, 29.9 percent lower than last year owing to settlement of bond maturities and the receipt of premium for the re-issued bonds series.

Cumulative IP, on the other hand, totaled P331.8 billion, a 3.67 percent growth from only P320 billion in the first 11 months last year.

NG revenues in November totaled P304.7 billion, a 17.35 percent increment from the recorded P259.7 billion in the same month las year. The bulk of NG collection came from tax sources, which took the lion’s share of 93.39 percent while non-tax sources accounted for the remaining 6.61 percent.

“The Bureau of Internal Revenue (BIR) collected P232.1 billion in November, reflecting strong year-on-year growth of 20.83 percent… BIR’s cumulative collection for the January to November period amounting to P2,012.9 billion likewise increased by 11.77 percent or P211.9 billion against last year’s eleven-month total,” the BTr said.

“Gross collection by the Bureau of Customs stood at P50.8 billion for the month, with P374 million in tax refunds… This brought the agency’s year-to-date collection to P578.1 billion, an expansion of 7.36 percent or P39.6 billion over comparable figures in 2018,” it added.

Similarly, the BTr bared a 16.3 percent expansion in total income reaching P5.5 billion owing to higher income from NG deposits, the NG share from the Philippine Amusement and Gaming Corp. income and dividends on NG shares of stocks in government owned and controlled corporations.

The government previously planned budget deficit of P624.4 billion this year which translates to 3.2 percent of the country’s gross domestic product to help spur overall growth.