The country's budget deficit declined by 65.27 percent to P34.4 billion in October from P64.7 billion in the same month last year, the Bureau of the Treasury reported Wednesday.

This reduced the budget deficit from January to October by 8.45 percent to P1.018 trillion from P1.112 trillion.

Revenue jumped by 33.56 percent to P385.8 billion in October, while expenditures grew by 8.32 percent to P420.2 billion.

As a result, revenue from January to October grew by 9.4 percent to P3.224 trillion, while expenditures rose by 4.5 percent to P4.242 trillion.

The Development Budget Coordination Committee expects the total revenue collection for this year to range from P3.84 trillion to P3.90 trillion, higher than its P3.73-trillion initial target during a meeting in April.

Tax revenues higher

Tax-based income grew by 9.18 percent to P2.896 trillion or 89.84 percent of total collection, while the rest or non-tax income rose by 11.5 percent to P327.6 billion in the first ten months.

Collection by the Bureau of Internal Revenue rose by 46.9 percent to P274.4 billion in October, bringing the year-to-date level up by 11 percent to P2.133 trillion or 80.8 percent of the full-year goal.

Meanwhile, the Bureau of Customs contributed P77.9 billion, up by 3.8 percent in October and drove the agency's collection 84 percent complete for the year.

The Bureau of the Treasury grew its income by 27 percent to P16.8 billion in October, resulting in a P174.8 billion year-to-date level or nearly three times bigger than its full-year target.

Meanwhile, expenditures also increased due to more aggressive government spending on infrastructure and the recent Barangay and Sangguniang Kabataan Elections.

The 8.32 percent growth to P420.2 billion in expenditures last month involved capital funding for "road projects by the Department of Public Works and Highways, modernization program of the Department of National Defense, and foreign-assisted rail transport projects of the Department of Transportation," the BTr said.

This increased year-to-date total spending to P4.242 trillion or 81 percent of the full target for 2023.

Primary expenditures rose by 1.8 percent to P361.2 billion in October, bringing the year-to-date level at P3.722 trillion or 2.69 percent growth.

Meanwhile, interest payments last month climbed by 77.7 percent to P59 billion. This translated to a 19.8 percent growth to P519.1 billion year-to-date.

"Larger interest payments, as well as maintenance and other operating expenses, particularly the expenditures of the Commission on Elections related to the conduct of the Barangay and Sangguniang Kabataan Elections, also contributed to the higher spending outturn," the BTr said.

The government aims to keep infrastructure spending at 5 to 6 percent of gross domestic product for long-term economic growth.