THE government still has enough cash to support its programs, even as the Bureau of Internal Revenue’s (BIR) extension of deadline for the filing of annual income tax returns (ITRs) is seen to translate to a delay in collections of about P145 billion.
Rosalia de Leon, national treasurer, said the government still has funds which it raised in issuances earlier this year, which include the regular treasury bill and bond auctions.
“No, (we) can afford. It is only one month. (We) have cash stashed from RTB (retail treasury bond) and full award auctions,” de Leon told reporters via Viber, after she was asked if the government needs to raise funds following the BIR’s extension.
The BIR has extended the deadline for the filing of the 2019 annual ITR by a month, from the original date of April 15, to May 15, 2020.
The Department of Finance earlier said an unintended result of the deadline extension is an estimated delay and shortfall in tax collections of around P145 billion, which may have to be covered by additional borrowings by the national government.
The government is thus appealing to those who are able to file within the deadline or even as early as now to do so through mechanisms that have been made available by the BIR, including online filing and payment platforms.
De Leon meanwhile said the government’s auctions will proceed for treasury bills today, and seven-year treasury bonds tomorrow, Tuesday.
“The government coffers has enough funds (Malalim ang kaban ng bayan),” de Leon said.
Asked about the government’s domestic borrowing plan for the second quarter, de Leon said: “Consulting market now. (Based on their feedback), preference is short to belly. Cash is king.”
