March budget deficit fell as revenues grew over 11%

THE national government’s budget deficit narrowed to P195.9 billion in March 2024 from P210.3 billion a year ago, as revenue grew 11.32 percent year-on-year, the Bureau of the Treasury said Wednesday.

The BTr said this improvement stemmed from strong revenue collection, compared to a modest 3.18-percent rise in spending.

Government revenue collection increased to P287.9 billion in March 2024, despite a 0.23 percent decline in tax revenues. The decrease was attributed to fewer working days due to holidays and a contraction in Bureau of Customs (BOC) collections.

Revenue in the first quarter reached

P933.7 billion ($17.2 billion), or 14.05 percent higher than the first three months of 2023. Tax revenues and nontax revenues amounted to P820.3 billion and P113.4 billion, respectively.

The Bureau of Internal Revenue (BIR) collected P145.3 billion in March, a 3.11-percent increase from 2023. The Bureau of the Treasury (BTr) also saw a significant rise in income for March, driven by higher dividend remittances and interest on advances from government-owned corporations.

Collections from other offices, which include non-tax revenue such as privatization proceeds and fees, slowed down in March compared to the same period last year. This can be attributed to a one-time return of unutilized funds in 2023 and lower Malampaya proceeds.

National government expenditures rose 3.18 percent year-on-year in March. The lower subsidies to government corporations helped temper the growth in spending.

The Philippines registered a primary deficit of P125.0 billion in March, a decrease of 16.33 percent from last year. The year-to-date primary deficit also reflected a significant drop from a year earlier.