The national government’s budget deficit declined year-on-year in June due to a faster increase in revenue collection than in government spending, the Bureau of Treasury said.
Data from BTr showed on Wednesday, July 24, showed that the country’s budget deficit declined by 7 percent to P209.1 billion in June from P225.4 billion during the same month last year.
BTr attributed the decrease in the budget deficit, or a fiscal situation in which a government’s total expenditures exceed its total revenues over a specific period, to a 3.5 percent increase in government revenues.
The Bureau of Internal Revenue collected P172.5 billion, marking a 4.71 percent year-on-year increase, while the Bureau of Customs saw a modest 0.67 percent increase in collections, totaling P74.6 billion.
Furthermore, other government offices contributed P168 billion by the end of June, significantly surpassing the goal of P102.2 billion.
Government expenditures totaled P505.6 billion, reflecting a 2.62 percent increase from the P492.7 billion spent in the previous year.
“The increase was mostly attributed to the implementation of capital outlay projects of the Department of Public Works and Highways, and the Department of National Defense under its Revised AFP Modernization Program, the preparatory activities of the Commission on Elections for the 2025 National and Local Elections, and the higher National Tax Allotment shares of LGUs,” said the BTr.
“The growth of June spending was, however, tempered by lower subsidy releases and net lending assistance to (GOCC) government-owned and controlled corporations,” it added.
In the first half of 2024, total revenues reached P2.149 trillion, surpassing the target of P2.077 trillion and showing a 15 percent increase from P1.860 trillion in the previous year. Tax revenues rose by 10 percent to P1.835 trillion from P1.668 trillion, while non-tax revenues surged by 63 percent to P314.2 billion from P192.4 billion.
Government spending for the first half of the year was P2.763 trillion, slightly exceeding the target of P2.739 trillion by 0.9 percent and marking a 14 percent increase from the P2.412 trillion spent the previous year. (TCSP)
