The national government’s budget deficit-to-gross domestic product (GDP) ratio rose to 8.3 percent in the first nine months of the year, data released by the Department of Finance (DOF) showed.
According to data posted on the DOF website, deficit-to-GDP swelled from the 6.9 percent recorded in the same period in 2020.
In the third quarter alone, the deficit-to-GDP ratio also increased to 9.2 percent from 7.6 percent in the third quarter last year.
The government has a deficit ceiling of 9.3 percent of GDP for the full year.
According to the most recent cash operations report, the national government incurred a deficit of P1.14 trillion in the first three quarters of 2021, 20.11 percent below the ceiling of P1.43 trillion for the period, amid a shortfall in expenditures while revenues exceeded the target.
The deficit however widened by 29.56 percent from the year ago level of P879.2 billion as expenditures posted a double-digit year-on-year growth.
In September alone, the budget shortfall amounted to P180.9 billion, 30.6 percent higher than the P138.5 billion recorded a year ago.
The DOF data also showed the expenditure effort increased to 24.6 percent nine months into the year from 23.6 percent in January to September 2020.
Tax effort inched up to 14.8 percent as of end-September from 14.5 percent in the same time last year, while revenue effort slowed down to 16.3 percent from 16.8 percent a year ago. – Angela Celis
