The national government’s budget deficit breached the ceiling for 2019 as the catch-up spending efforts accelerated expenditures in the latter part of the year, data released by the Bureau of the Treasury (BTr) showed.
According to government data released yesterday, last year’s deficit exceeded the cap by 6.49 percent as faster spending in December also pushed expenditures above program for the entire year.
The budget shortfall amounted to P660.2 billion in 2019, P40.2 billion up versus the P620 billion cap. It is also 18.27 percent higher than the 2018 deficit of P558.3 billion.
“Relative to the economy, the full-year deficit was at 3.55 percent of gross domestic product (GDP), higher than the target of 3.25 percent and 3.2 percent for 2018,” the BTr said.
“Expenditures sped up despite the delay in the approval of the 2019 budget as line agencies caught up with spending towards the latter part of the year,” it said.
The deficit for December alone amounted to P251.1 billion, 209.84 percent up from the year ago level of P81 billion, reflecting the catch-up spending plan done during the said month.
In particular, disbursements in December surged by 57.83 percent to P494.4 billion, from P313.3 billion in the same month in 2018.
“(This is) backed by strong infrastructure spending of the Department of Public Works and Highways, implementation of social protection programs and services of the Department of Social Welfare and Development, and personnel services expenditures with the grant of the Service Recognition Incentive, payment of pension and retirement benefits, as well as requirements for the creation and filling of positions in various agencies,” the BTr said.
Thus, full-year disbursements reached P3.8 trillion, 0.74 percent or P28.1 billion higher than the target of P3.77 trillion.
It is also 11.42 percent up versus last year’s P3.41 trillion.
Expenditures net of interest payments for the full year was also higher than the program by 1.98 percent, as well as 12.34 percent up year-on-year.
Meanwhile, the government’s revenue settled at P3.14 trillion in 2019, 0.39 percent or P12.2 billion short of the P3.15 trillion program for the year.
It however posted a 10.08 percent growth versus the previous year’s collections of P2.85 trillion.
“Tax revenues swelled 10.21 percent year-on-year to P2.83 trillion, making up 90 percent of total collections. The remaining 10 percent came from non-tax sources which also grew by 8.91 percent to P309.7 billion,” the BTr said.
“Revenue effort went up to 16.86 percent from 16.36 percent in 2018 and exceeded the program of 16.51 percent. Meanwhile, tax
effort of 15.19 percent was lower than the goal of 15.49 percent but higher than the previous year’s 14.72 percent,” the agency added.
The revenue in December 2019 amounted to P243.3 billion, an increase of 4.77 percent from the previous year’s outturn of P232.2 billion.
The Bureau of Internal Revenue’s (BIR) collections for the full year amounted to P2.175 trillion, 4.22 percent below the P2.271 trillion program, but 11.46 percent higher than the P1.95 trillion generated in 2018.
“While percentage taxes grew significantly, the lower revenue from the excise tax on fuel and sugary drinks partly caused the lower-than-programmed collection of the agency,” the BTr said.
The BIR collected P162.6 billion in December, which rose 7.78 percent from the P150.8 billion generated in the same period a year ago.
The Bureau of Customs’ (BOC) net revenue take of P630.3 billion last year was also 4.65 percent lower than the target of P661 billion, but was 6.27 percent better than 2018’s P593.1 billion.
“The shortfall is mainly attributed to peso appreciation and lower importation. Nevertheless, BOC’s full-year gross revenue totaled P640 billion, inclusive of the P9.7 billion tax refund paid to claimants,” the BTr said.
However, the P52.2 billion raised by the BOC for December contracted by 4.47 percent year-on-year relative to December 2018 collections of P54.6 billion.
The BTr generated P146.5 billion in 2019, nearly double the program of P73.9 billion and 28.3 percent higher compared to the P114.2 billion achieved in 2018.
“Growth was propelled by higher interest income from national government deposits, dividend on shares of stocks, interest on advances to government-owned and -controlled corporations as well as interest income from Bond Sinking Fund investments and the national government’s share from Philippine Amusement and Gaming Corp. income,” the agency said.
In December 2019, the bureau was likewise able to exceed the year ago income by 11.42 percent to reach P11.8 billion.
