The national government’s budget deficit in the first half of 2022 fell below program on higher revenues and lower-than-expected expenditures during the period.
According to the Bureau of the Treasury’s (BTr) latest cash operations report, the national government’s deficit in the first half of the year amounted to P674.2 billion, falling below the P828.7 billion program by 18.64 percent.
It also lagged by 5.84 percent from last year’s P716.1 billion.
In June alone, the deficit rose by 43.81 percent to P215.5 billion from the P149.9 billion budget gap recorded in the previous year.
The June outturn was driven by the 27.91 percent growth in expenditures which outpaced the 18.2 percent increase in government receipts.
The first semester spending performance of P2.4 trillion was up by 8.85 percent from the previous year’s P2.21 trillion, but 3.04 percent lower than the P2.48 trillion target set for the period, which the BTr said can be largely attributed to the slower-than-expected capital expenditures amid the election ban in late March up to early May, as well as the timing of release for the special shares of local government units in the proceeds of national taxes to July.
For June alone, national government expenditures reached P505.8 billion, 27.91 percent more than the P395.4 billion last year, which the BTr said was mainly on account of higher capital outlay disbursements for road and transport infrastructure programs, and projects under the Revised Armed Forces of the Philippines Modernization Program.
“Spending, likewise, grew on the back of the implementation of various social protection programs, the release of the P10 billion Coco Levy Fund and higher personnel services expenditures,” the BTr said.
Meanwhile, year-to-date revenue improved to P1.73 trillion, surpassing the P1.65 trillion target for the period by 4.8 percent. It is also 15.91 percent higher versus the previous year’s P1.49 trillion.
Similarly, the national government’s collection for June amounted to P290.3 billion, 18.2 percent above last year’s comparable performance of P245.6 billion.
The Bureau of Internal Revenue’s (BIR) collection stood at P1.13 trillion for the first half of 2022, growing by 9.76 percent year-on-year but 2.77 percent short of the P1.16 trillion program.
For the month of June, BIR’s collection performance is 8.9 percent higher year-over-year reaching P173.5 billion.
Meanwhile, the Bureau of Customs’ (BOC) year-to-date revenue of P396.7 billion exceeded both the P360.7 billion midyear program and the previous year’s outturn of P301.7 billion by 9.98 percent and 31.47 percent, respectively.
“The agency attributed the gains from anti-smuggling measures including the fuel marking program which was further boosted by elevated oil prices and peso depreciation,” the BTr said.
The BOC also recorded a new high for the year — 46.07 percent year-on-year growth with P76.2 billion collected in June — and marked 17 straight months of positive growth. – Angela Celis
