NG budget gap shrinks to R8.6 B in November

The national government’s budget deficit declined in November this year, falling below ceiling set for the month, after revenue collections outpaced the growth of public spending, data from the Bureau of the Treasury showed.

The Duterte administration incurred a R8.6 billion budget deficit last month, down by 55 percent from R19.1 billion in the previous year, and represented only 58.1 percent of the R14.8 billion program for November.

Treasury data showed the drop in fiscal gap was owing to higher revenues and slower spending.

State revenues jumped 16 percent in November to R243.5 billion from R209.2 billion in the same month last year, while expenditures increased by 10 percent to R252.1 billion from R228.4 billion.

In November, the government programmed its revenues to reach R235.16 billion, while disbursements at R249.97 billion.

The Bureau of Internal Revenue (BIR) and the Bureau of Customs, accounted for the bulk of collections during the month at R179.4 billion, and R46.4 billion, respectively.

Non-tax earnings, on the other hand, netted R15.2 billion, with the Bureau of the Treasury contributing R4.3 billion.

“The increase is mainly due to higher collections of foreign exchange risk cover and guarantee fees which offset the decline in BSF/SSF (bond sinking fund/ securities stabilization fund) income and NG (national government) share in airport terminal fees,” the Treasury bureau said in a statement.

Other offices, meanwhile, contributed R11 billion, up 51 percent from last year.

The bulk of government expenditures, meanwhile, was for items classified as “others,” which increased 11 percent to R231.5 billion. Interest payments totaling R20.6 billion, up 5 percent year on year, accounted for the rest of the government’s expenditures for the month.

In the first 11-month of the year, the government’s budget shortfall stood at R243.5 billion, up by 3.5 percent year-on-year from R235.2-billion.