Gov’t records P62.5-B budget deficit in June

6-FOLD HIGHER. The P62.5-billion budget deficit in June is 6-fold higher from the P8.5-billion recorded in June 2013. File photo by Agence France-Presse

Manila, Philippines – Increased government spending in June resulted in a budget deficit of P62.5 billion ($1.44 billion*), a sixfold increase from the P8.5 billion ($196.11 million) posted in the same month of 2013.

In January to June, the deficit amounted to P54 billion ($1.25 billion), well within the government’s target, the Department of Finance (DOF) reported on Monday, July 28.

The first-half deficit was 5% higher than last year’s figure, and reversed the county’s 5-month surplus. The government recorded a surplus of P8.5 billion ($196. 19 million) in the first 5 months.

Higher revenue, lower interest payment

DOF Secretary Cesar Purisima said that the government’s efforts to boost revenue collections helped boost spending by 10.9% in the first half and yet stay within the deficit target.

“As a result of prudent liability management, more of these disbursements have been allocated to productive investments instead of our debt obligations,” Purisima said.

Revenues hit P138.6 billion ($3.20 billion) in June, and P933.7 billion in the first 6 months, a year-on-year growth of 11.2%.

Collections of the Bureau of Internal Revenue, Bureau of Customs, and Bureau of Treasury (BTr) registered annual growths. BTr collections even exceeded the full-year target, said the DOF.

Government spending reached P201.1 billion ($4.64 billion) in June, bringing the total for the first half to P987.7 billion ($22.80 billion), a 10.9% increase versus last year.

Also in the first semester, interest payments as a share of expenditures dropped to 16.2%, a vast improvement from the 20.7% recorded in 2009, a year before the Aquino administration took office. Interest payments in January to June amounted to P159.7 billion ($3.68 billion), down 17.6% year-on-year. – Rappler.com

*($1 = P43.35)