The national government’s budget deficit widened to P174.9 billion in May this year from P122.2 billion in the same month last year, reflecting a 43.10-percent increase as government expenditure outpaced revenue collections.
In a news release yesterday, the Bureau of the Treasury (BTr) attributed the higher deficit to the acceleration in government spending, “pushing disbursement growth for the month to 22.4 percent, as against revenue expansion of 14.59 percent.”
BTr data showed that state collections in May amounted to P382.1 billion, up 14.59 percent from the P333.4 billion in the same period last year.
The month’s strong revenue performance was underpinned by higher non-tax collections.
Year-to-date collection stood at P1.9 trillion, outperforming the previous year’s outturn by 16.34 percent or P260.2 billion.
Of the total amount, 85.59 percent, or PHP1.6 trillion was generated through taxes, while the remaining balance of 14.41 percent, or P267 billion came from non-tax sources.
NAT’L EXPENDITURES
National government expenditures, meanwhile, amounted to P557 billion in May, 22.24 percent higher compared to the P455.7 billion spent a year ago.
“The increase was driven largely by the implementation of capital outlay projects of the Department of Public Works and Highways, and the Department of National Defense, as well as the social and health programs of the Department of Social Welfare and Development, and the Department of Health, respectively,” the BTr said.
The Treasury noted that the higher national tax allotment shares of local government units and increased budgetary support to government-owned and controlled corporations also contributed to the growth of disbursements in May.
Total state expenditures from January to May stood at P2.3 trillion, higher by 17.65 percent compared to the P1.9 trillion posted in the same period in 2023.
Primary expenditures for the month reached P495.9 billion, recording a 19.69-percent growth from the same period last year.
Interest payments, on the other hand, amounted to P61.1 billion in May, reflecting a 47.78-percent year-on-year growth due to additional debt incurred last year and higher interest rates of both domestic and foreign borrowings.
For the first five months of the year, the fiscal deficit widened to P404.8 billion, which is 24.06 percent or P78.5 billion more than the P326.3 billion recorded during the same period in 2023.*PNA
