Spending bloats Oct. gap to P99B

In October, the Bureau of Internal Revenue collected P186.8 billion, rising 15.20 percent from the same month last year.

(Photo by Mari Gimenez / Unsplash)

The budget deficit widened by over 50 percent in October to P99.1 billion as state spending outpaced collections during the period, data from the Bureau of the Treasury showed Friday.

It brought the year-to-date budget deficit to 1.1 trillion pesos, versus the 1.2 trillion pesos a year ago, which is 7.6 lower, the Treasury bureau said.

While 10-month disbursements increased by 9.9 percent to P4.06 trillion, October expenses increased by 22.2 percent to P387.9 billion.

The country’s monthly revenue collections also increased by 14.1 percent to P288.9 billion in October, while 10-month revenue collections increased by 18.3 percent to P2.9 trillion.

BTr said the total receipts had reached 89 percent of the yearly revenue goal of P3.3 trillion.

According to the Treasury bureau, 90 percent of the total receipts, or P2.6 trillion, was made up of tax receipts, while non-tax revenue made up the remaining P299.5 billion.

In October, the Bureau of Internal Revenue collected P186.8 billion, rising 15.20 percent from the same month last year.

The BIR collected P1.9 trillion from January to October, up 12.56 percent from last year and 80 percent of the P2.4 trillion target.

On the other hand, the Bureau of Customs increased its collection by 35.16 percent from P55.5 billion in October last year to P75.1 billion in October.

The BoC has collected P713.5 billion this year, up 35.81 percent from last year and 99 percent of the P721.5 billion full-year target.

BTr revenue higher

In October, the Treasury’s revenue increased by 47.24 percent to P13.2 billion.

“This was due to higher national government share from the Philippine Amusement and Gaming Corp. profit and bond sinking fund investment performance which offset lower dividend remittance,” the BTr explained.

By the end of October, total Treasury receipts increased by 24.82 percent to P142.9 billion from P114.5 billion.

Other non-tax receipts in October, such as privatization proceeds and fees, decreased by 44.42 percent to P13.7 billion versus the P24.7 billion reported in the same month last year.

The total non-tax revenues collected, which totaled P156.6 billion, exceeded the P30.2 billion received from January to October 2021 by 23.9 percent.

Expenditures on upswing

Disbursements by the national government increased from P317.4 billion to P387.9 billion in the same period last year.

The Treasury bureau attributed the higher spending to the higher National Tax Allotment of local government units and subsidy releases for programs implemented by government corporations.

According to BTr, the national government also disbursed 82 percent of the P5 trillion initiative, or P4.1 trillion.

Between January and October of 2021, annual spending increased by 9.87 percent, totaling P3.7 trillion.

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