NG budget deficit shrinks in September

The national government’s budget deficit declined in September amid lower spending owing to non-recurring expenditure registered in the same month last year, data from the Bureau of the Treasury showed.

The Duterte administration ran a R36.9 billion fiscal deficit last month, down by 51 percent compared with R75.3 billion in the previous year and 48 percent lower than the R71 billion ceiling set for the month, the Treasury reported late Monday.

The September fiscal deficit brought the nine-month gap to R213.1 billion, below the R345.2 billion program by 38 percent, but almost unchanged compared with R213.7 billion last year.

Total disbursements during the month reached P237 billion, a decrease of 2 percent from R241.3 billion a year before and lower than the programmed spending of R71 billion by 48 percent.

The decline in expenditures in September was due to the government’s R20.47 billion onetime payment to the Philippine International Air Terminals Co. (PIATACO) in the same month in 2016.

At end-September, public expenditures amounted tp R2.014 trillion, higher by 8 percent yearon-year, but still 6 percent short of the R2,137.9 billion target.

Interest payments (IP) in September also decreased by 19 percent year-on-year to R26.4 billion, bringing the first ninemonth total disbursements to R249 billion, also unchanged from the same period in 2016.

As a percentage of revenue and expenditures, the January to September IP accounted for 13.8 percent and 12.4 percent, respectively, improving from previous year levels of 15.2 percent and 13.4 percent.

Netting out interest payments from expenditures, the national government recorded a R10.5 billion primary deficit in September which is significantly lower than the R42.7 billion primary deficit recorded in 2016.