Budget surplus widens to P44.5 billion under reenacted budget
MANILA, Philippines– The government ran a budget surplus of P44.5 billion in January 2019, 4 times higher than the P10.2 billion recorded during the same month a year ago, the Bureau of the Treasury (BTr) said on Monday, March 18.
The budget surplus widened behind the year-on-year revenue expansion of 7% combined with the disbursement contraction of 7%.
The latest figures come as the government operates under a reenacted budget amid the deadlock between the Senate and the House of Representatives.
A budget surplus occurs when a government's income exceeds expenditures.
While it may mean that the government has more savings, it may also hurt economic growth, as money is not spent on projects like infrastructure. (READ: NEDA warns reenacted budget to really hurt economy)
Disbursements in January reached P212.2 billion, lower by P16.5 billion compared to the same month in 2018.
"The contraction in government spending resulted largely from the delays in the implementation of new government projects and salary adjustments due to the deferred passage of the 2019 [Genaral Appropriations Act]," the BTr said.
Meanwhile, revenue collections for January reached P256.7 billion, up by 7% compared to the P238.9 billion recorded in the same month last year.
Most collections came from the Bureau of Internal Revenue, raising P185.1 billion, up by 5% from last year, due to the Tax Reform for Acceleration and Inclusion law.
In 2018, the government spent more than what it had intended to, which resulted in a fiscal deficit of P558.3 billion. The figure was 3.2% of the country's gross dnomestic product. – Rappler.com