The national government’s budget deficit-to-gross domestic product (GDP) ratio narrowed to 6.4 percent in the first three months of the year, data released by the Department of Finance (DOF) showed.
According to data posted on the DOF website, the deficit-to-GDP shrank to 6.4 percent from 7.4 percent in the same period last year.
According to the most recent cash operations report, the national government’s budget deficit narrowed to P316.8 billion in the first quarter of the year as revenues posted a double-digit growth, outpacing the increase in expenditures.
The budget shortfall in the first three months of the year is 1.44 percent lower than the P321.5 billion deficit recorded a year ago.
The DOF data also showed that the revenue effort was maintained at 15.9 percent.
However, the tax effort inched down to 14.1 percent as of the first quarter of 2022 from 14.3 percent in the same time last year.
This was driven by the slower tax effort of the Bureau of Internal Revenue at 10.2 percent from 10.7 percent a year ago.
The Bureau of Customs, however, showed better tax effort at 3.8 percent, from 3.4 percent in the first quarter of 2021.
The DOF data also showed that the expenditure effort was lower at 22.3 percent compared to 23.3 percent a year ago. – Angela Celis
