The national government’s budget deficit shrank to P44.4 billion in April as revenues posted a double-digit growth while expenditures dropped from the year ago level.
According to a statement released by the Bureau of the Treasury (BTr) yesterday, the national government’s fiscal deficit in April was 83.78 percent lower versus the P273.9 billion posted a year ago.
Revenues recorded a 55.46 percent hike while expenditures plummeted by 27.14 percent.
The government’s collection of taxes in the same month last year posted a steep decline while the deadline for the filing and payment of income and other taxes due for April 2020 was also extended in light of the implementation of the enhanced community quarantine (ECQ).
The Bureau of Internal Revenue (BIR) stuck to the April 15 deadline for this year, the The government also substantially spent for its coronavirus disease 2019 (COVID-19) response at the height of the imposition of the ECQ last year.
The cumulative budget deficit as of end-April went up by 1.63 percent to P365.9 billion from last year’s budget gap of P360 billion for the period, the BTr said.
April revenues climbed to P291.9 billion from P187.8 billion a year ago, notching a 55.46 percent improvement.
Year-to-date, total collections also increased by 3.95 percent, reaching P988.4 billion from P950.8 billion in the first four months of 2020.
The BIR’s collections of P219 billio was more than double last year’s P90.5 billion.
The BTr said the positive outturn for the period can be attributed to the timing of payment of income taxes.
With its April performance, BIR’s cumulative revenue also improved to P688.7 billion, 23.14 percent better than the January to April 2020 comparable outturn of P559.3 billion.
Collections by the Bureau of Customs (BOC) amounting to P51.8 billion topped last year’s revenue of P34.4 billion by 50.42 percent, driven by the continued improvement in importation volume, the BTr said.
To date, BOC has collected P201 billion, surpassing the P179.7 billion achieved in the first four months of 2020 by 11.81 percent.
For April, BTr income slid by 84.5 percent to P9 billion from P58.3 billion, coming from the high base effect of last year’s remittances in compliance with Bayanihan I.
“The decline in income from government services and dividends on shares of stocks held by the government was partially offset by the higher income from interest on advances from government-owned and -controlled corporations and government deposits,” the BTr said.
Year-to-date, BTr collection is also lower by 71.46 percent to P48.4 billion from P169.6 billion a year ago, which the agency said was due to the same factors as well as lower national government share from the Philippine Amusement and Gaming Corp.’s income and interest on advances.
Revenue from other offices, which include other non-tax collections including privatization proceeds and fees and charges, rose to P10.8 billion in April, far exceeding last year’s collection of P4.5 billion.
“Growth was partly propelled by the remittance of the Bases Conversion and Development Authority of the disposition proceeds amounting to P2.7 billion as well as the eased restrictions on the operations of government collecting offices versus last year,” the BTr said.
As of end-April, the collection of P41.9 billion also indicated a 17.35 percent Expenditures for April totaled P336.3 billion, down by 27.14 percent from the P461.7 billion recorded in the same month last year, which the BTr said was due to the high base effect of releases for COVID-19 emergency response and measures under the Bayanihan to Heal as One Act in 2020.
“These included the first tranches of the Social Amelioration Program and Small Business Wage Subsidy Program, and the Bayanihan Grant to Provinces, Cities, and Municipalities which were released in April last year,” the BTr said.
Expenditures for the first four months of the year amounted to P1.35 trillion, up by 3.31 percent from last year’s P1.31 trillion.
Net of interest payments, primary expenditures for April declined to P312.5 billion from last year’s P439.8 billion by 28.94 percent.
The cumulative primary spending as of end-April was still up 3.03 percent to P1.2 trillion from the year ago level of P1.17 trillion.
