Government incurred P14.1-billion budget deficit in January


The government incurred a P14.1-billion budget deficit in January, a reversal of the P23-billion budget surplus it posted a year ago, as spending picked up while revenue collection fell.

Data from the Bureau of the Treasury showed that government spending increased 1.18-percent year-on-year in January while revenue collection sank 11.51 percent in the first month of the year.

The Treasury said in a statement revenue collection in January reached P260.7 billion, down P33.9 billion from P294.6 billion a year ago. Tax collection made up 89 percent or P232.7 billion of the total while non-tax sources contributed 11 percent or P28.0 billion.

Collections by the Bureau of Internal Revenue declined 6.54 percent year-on-year to P182.2 billion in January on the continued economic disruptions brought about by the health crisis. 

Customs’ collection also lagged behind last year’s revenue performance by 15.41 percent or P8.6 billion, totaling P47.3 billion.

The Bureau of the Treasury posted a 34.27-percent or P9.7-billion contraction in revenue to P18.7 billion in January. The decrease was attributed to a high base effect of dividend remittances from government-owned or -controlled corporations in January, particularly the Bangko Sentral ng Pilipinas which remitted P17.3 billion last year, and the 58.69-percent or P1.9-billion drop in government share from the income of state-run Philippine Amusement and Gaming Corp.

Other offices contributed P9.4 billion in January, registering a 24.97-percent or P3.1-billion decline over comparable collections recorded a year ago. 

Meanwhile, government expenditures in January amounted to P274.8 billion, reflecting a modest increase of 1.18 percent or P3.2 billion from last year’s P271.6 billion spending. 

“The uptick was moderated by lower interest payments, which declined by 23.43 percent or P14.4 billion year-on-year to P47.0 billion mainly due to the redemption of global bonds in 2020 and the settlement of premiums on reissued Treasury Bonds,” the Treasury said. 

As a percentage of revenue and expenditures, interest payments for January accounted for 18.04 percent and 17.11 percent compared to previous year levels of 20.84 percent and 22.61 percent, respectively.

Net of interest payments, spending grew by 8.37 percent year-on-year, or P17.6 billion from P210.2 billion recorded a year ago on higher allocations for local government units and disbursements by line agencies. 

Primary expenditures represented 83 percent of the total disbursements for January this year.

Netting out interest payments from expenditures, the national government recorded a P33-billion primary surplus in January, 60.97 percent or P51.5 billion lower compared to last year’s primary balance of P84.5 billion, it said.

Data from the Bureau of the Treasury showed that government spending increased 1.18-percent year-on-year in January while revenue collection sank 11.51 percent in the first month of the year.

The Treasury said in a statement revenue collection in January reached P260.7 billion, down P33.9 billion from P294.6 billion a year ago.  Tax collection made up 89 percent or P232.7 billion of the total while non-tax sources contributed 11 percent or P28.0 billion.

Collections by the Bureau of Internal Revenue declined 6.54 percent year-on-year to P182.2 billion in January on the continued economic disruptions brought about by the health crisis. 

Customs’ collection also lagged behind last year’s revenue performance by 15.41 percent or P8.6 billion, totaling P47.3 billion.

The Bureau of the Treasury posted a 34.27-percent or P9.7-billion contraction in revenue to P18.7 billion in January. The decrease was attributed to a high base effect of dividend remittances from government-owned or -controlled corporations in January, particularly the Bangko Sentral ng Pilipinas which remitted P17.3 billion last year, and the 58.69-percent or P1.9-billion drop in government share from the income of state-run Philippine Amusement and Gaming Corp.

Other offices contributed P9.4 billion in January, registering a 24.97-percent or P3.1-billion decline over comparable collections recorded a year ago. 

Meanwhile, government expenditures in January amounted to P274.8 billion, reflecting a modest increase of 1.18 percent or P3.2 billion from last year’s P271.6 billion spending. 

“The uptick was moderated by lower interest payments, which declined by 23.43 percent or P14.4 billion year-on-year to P47.0 billion mainly due to the redemption of global bonds in 2020 and the settlement of premiums on reissued Treasury Bonds,” the Treasury said. 

As a percentage of revenue and expenditures, interest payments for January accounted for 18.04 percent and 17.11 percent compared to previous year levels of 20.84 percent and 22.61 percent, respectively.

Net of interest payments, spending grew by 8.37 percent year-on-year, or P17.6 billion from P210.2 billion recorded a year ago on higher allocations for local government units and disbursements by line agencies. 

Primary expenditures represented 83 percent of the total disbursements for January this year.

Netting out interest payments from expenditures, the national government recorded a P33-billion primary surplus in January, 60.97 percent or P51.5 billion lower compared to last year’s primary balance of P84.5 billion, it said.

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