The national government posted a higher budget deficit for February 2024 due to an increase in expenditures and revenue growth, the Bureau of Treasury (BTr) said.

Data from the bureau released on Monday showed that the country's budget deficit increased to P164.7 billion from P106.4 billion in the same month last year.

The wider budget gap stemmed from the 22.14 percent year-on-year (YoY) increase in expenditures, matched with moderate revenue growth of 5.73 percent.

With the February turnout, BTr said the year-to-date fiscal balance reverted to a deficit of P76.7 billion, which is 26.56 percent or P16.1 billion higher relative to last year's P60.6 billion January to February budget gap.

Expenditures

According to the bureau, the total expenditures for February 2024 reached P388.7 billion, outperforming the previous year’s actual spending by 22.14 percent or P70.5 billion.

"(The increase is) driven by higher releases to Local Government Units, as well as larger disbursements recorded in the Department of Health and Department of Social Welfare and Development for their banner health and social protection programs, respectively," BTr said.

"Similarly, higher capital expenditures posted by the Department of Public Works and Highways contributed to the growth of February 2024 disbursements," BTr added.

The figure boosted the year-to-date expenditures to P722.5 billion, 16.42 percent or P101.9 billion higher than the January to February 2023 figure.

On the other hand, the primary expenditures - or the net of interest payments - amounted to P340.9 billion, up by 19.97 percent or P56.7 billion year-on-year.

These represented 87.7 percent of the overall spending in February.

Similarly, year-to-date primary expenditures improved by 11.29 percent or P60.9 billion to P600.5 billion.

Revenues

Meanwhile, the bureau said the total revenue collections for February increased to P224.0 billion, surpassing last year’s figure for the same period by 5.73 percent or P12.1 billion.

"This pushed the (year-to-date) collection to P645.8 billion, outperforming the P560.0 billion actual collections recorded in the equivalent period last year by 15.32 percent or P85.8 billion," BTr said.

Broken down, 92.36 percent, or P596.5 billion was raised through taxes, while the remaining 7.64 percent, or P49.4 billion came from non-tax sources.

The Bureau of Internal Revenue (BIR) raised P138 billion in February, exceeding the previous year’s level by 6.65 percent or P8.6 billion.

This pushed the bureau’s cumulative collection to P446.4 billion, underlying double-digit YoY growth of 22.58 percent equivalent to P82.2 billion.

Collections by the Bureau of Customs (BOC) improved by 12.19 percent to P70.6 billion in February 2024 from last year’s P62.9 billion.

"This drove the agency’s aggregate collection for the Jan-Feb period to P144.0 billion, surpassing the level posted in the same period last year by 7.84 percent or P10.5 billion," BTr said.

The Bureau of the Treasury (BTr) contributed P6.5 billion in revenues for February, slightly higher by 1.56 percent year-on-year, largely due to higher dividend remittances and national government share from PAGCOR income.