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Budget deficit declines in July

The national government’s budget deficit went down by 39.67 percent in July as revenue growth surpassed the increase in spending, the Bureau of the Treasury (BTr) said.

Data released yesterday showed that the budget deficit during the month declined to P28.8 billion from P47.8 billion in July last year.

The government incurs a budget deficit when spending exceeds its revenues.

For the first seven months of the year, the national government’s budget deficit, however, reached P642.8 billion, higher by 7.21 percent compared to the same period in 2023.

REVENUE PERFORMANCE

Revenue collections reached P457.4 billion in July, up 11.09 percent from P411.7 billion in July last year.

The BTr said tax collections, which comprised 88.07 percent of the total, grew by 15.46 percent year on year while non-tax revenues, accounting for 11.93 percent, contracted by 13.2 percent.

Collections for January to July, meanwhile, reached P2.6 trillion, surpassing the P2.3 trillion raised in the same period last year.

Of the 2024 collections, 85.85 percent, or P2.2 trillion, came from taxes, which grew by 10.99 percent.

On the other hand, the non-tax component contributed P368.8 billion, higher by 44.47 percent from last year.

EXPENDITURES

The national government’s expenditures, meanwhile, rose by 5.8 percent in July.

“July disbursements reached P486.2 billion and were 5.8 percent or P26.7 billion higher than what was spent in 2023 partly due to the higher National Tax Allotment (NTA) share of LGUs,” the BTr said.

Primary expenditures (net of interest payments) increased by 2.73 percent to P406.8 billion, while interest payments, likewise, rose by 24.9 percent to P79.4 billion.

“This was due to the higher cost of financing and depreciation of the peso observed throughout the year,” the BTr said.

For January to July, spending amounted to P3.2 trillion, up by 13.17 percent from last year’s P2.8 trillion.*PNA

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