Government spending continues to outstrip revenue in January resulting in a budget deficit of P23 billion, up 66.30 percent from last year’s P14.1 billion, according to the Department of Finance (DOF).
“The fiscal performance for the period reflects a 9.70 percent growth in public expenditures alongside a 6.65 percent increase in revenue collection,” the DOF said.
January revenue reached P278.1 billion, 92 percent of which was from taxes worth P255.3 billion while non-tax collections amounted to P22.8 billion.
“Collections by the Bureau of Internal Revenue for the month was at P195.8 billion, 7.48 percent or P13.6 billion better against the P182.2 billion actual collections made in January of the previous year,” the DOF said.
The DOF also said collections by the Bureau of Customs hit P58.3 billion, up 23.43 percent from P47.3 billion last year.
“Improved valuation, intensified enforcement against illegal importation, improved compliance by traders to customs laws, gradual improvement of importation volume, and the government’s effort in ensuring unhampered movement of goods domestically and internationally drove the positive performance for the month,” it said.
The Bureau of the Treasury raised P10.9 billion for the government, down by 41.75 percent.
“The contraction was attributed to the high base effect of dividend remittances of the National Transmission Corp. and PAGCOR (Philippine Amusement and Gaming Corp.) in January 2021, which remitted P8.3 billion and P1.0 billion, respectively,” the DOF said.
January collections from other offices — other non-tax including privatization proceeds and fees and charges — stood at P11.9 billion, 7.96 percent higher than last year’s P11 billion.
On the other hand, government spending hit P301.5 billion, partly due to higher National Tax Allocation releases.
Of the total, 78 percent was primary expenditures. Interest payment amounted to P65.6 billion, up 39.40 percent from last year’s P47 billion.
The DOF said interest payments accounted for 23.57 percent of revenue and 21.74 percent of expenditures, higher than last year’s 18.04 percent and 17.11 percent, respectively.
