The country’s budget deficit drastically narrowed in August due to strong revenue growth and a contraction in public spending, the Bureau of the Treasury said on Wednesday, September 25.
Data from the Treasury Bureau showed that the Marcos administration ran a P54.2 billion budget deficit in August 2024, narrowing by 59.24 percent or P78.8 billion compared with the P133.0 billion shortfall incurred a year ago.
The lower deficit was brought about by the 24.40 percent growth in government receipts alongside a minimal 0.68 percent contraction in government expenditures.
This trimmed the year-to-date budget deficit to P697.0 billion by 4.86 percent or P35.6 billion from the P732.5 billion budget gap in the previous year, equivalent to 46.95 percent of the P1.5 trillion full-year program for fiscal year 2024.
Data broken down, total revenue collections grew by 24.40 percent or P75.8 billion from a year ago to P386.3 billion in August 2024.
The resulting P3.0 trillion year-to-date collection outperformed the previous year’s outcome by 15.91 percent or P410.8 billion and is already 70.10 percent of the P4.3 trillion full-year program for FY 2024.
The Bureau of Internal Revenue (BIR) collected P238.1 billion (net of P417.0 million in tax refund) in August, 11.51 percent or P24.6 billion above last year’s comparable outturn. This pushed the agency’s cumulative collection to P1.9 trillion, outperforming the P1.7 trillion collection logged in the same period a year ago by 12.55% (P214.1 billion).
The Bureau of Customs’ (BOC) collections amounted to P78.5 billion (net of P219.0 million tax refund) in August, underscoring a 4.69% or P3.5 billion growth over the P75.0 billion raised a year ago. This drove the BOCs’ 2024 cumulative collections to P614.4 billion, 5.66% or P32.9 billion higher than its January-August 2023 performance.
Non-tax revenues in August reached P66.1 billion, more than thrice last year’s outturn of P18.8 billion, pushing the YTD collections to P434.9 billion, equivalent to 96.73% of the revised full-year program of P449.6 billion.
Income collected and generated by the Bureau of the Treasury (BTr) rose to P16.5 billion in August, more than twice its collections in the same period a year ago.
Collections of other offices (other non-tax, including privatization proceeds, fees and charges, and grants) in August surged to P49.6 billion, nearly quadrupling last year’s outturn. This improved the January-August revenue to P234.6 billion, underlying a significant increase of 89.16% (P110.6 billion) compared with the same period in the previous year.
Expenditures
The NG disbursed P440.5 billion in August 2024, reflecting a modest decline of 0.68% (P3.0 billion) from last year’s P443.6 billion.
The Bureau of Treasury attributed the decline to the lower total subsidy releases to government corporations, and the sizeable outstanding checks recorded in various departments, such as the Department of Public Works and Highways (DPWH), the Department of Social Welfare and Development (DSWD), and the Department of Health (DOH), during the period.
Nonetheless, the cumulative disbursement rose to P3.7 trillion, 11.32 percent (P375.3 billion) higher year-on-year, attaining 64.13 percent of the P5.8 trillion full-year 2024 program.
Primary expenditures (net of interest payments), which accounted for 88.02 percent or P387.8 billion of the August expenditures, dipped by 3.27 percent or P13.1 billion on a year-on-year basis.
Nevertheless, the country’s primary expenditures year-to-date grew by 8.70 percent or P254.5 billion to P3.2 trillion from last year’s P2.9 trillion for the same period largely due to higher National Tax Allotment releases to local government units. (TCSP)
