Budget balance lands surplus in April
MANILA— The government’s budget balance landed a surplus, as revenue collections raked in a larger haul in April due to filing of tax returns.
Data released by the Bureau of the Treasury on Monday showed that the state posted a budget surplus of P66.8 billion in April. This was a reversal from the deficit of P210.3 billion in the preceding month.
But in the first four months of the year, the state’s budget balance still posted a deficit. With the surplus in April however, the budget deficit was slashed by 34.57% year-on-year to P204.1 billion.
The surplus meant that the government’s revenue collection efforts exceeded expenditures.
Sought for comment, Nicholas Antonio Mapa, senior economist at ING Bank in Manila, attributed the surplus to the filing of tax returns. “We still expect the country to post a sizable deficit by yearend although look for authorities to limit spending to minimize
the shortfall,” he said in a Viber message.
Domini Velasquez, chief economist at China Banking Corp., agreed with Mapa’s assessment.
“Revenues may fall short as the government will
no longer enjoy last year’s high oil import price windfall. Slower GDP growth this year may also lead to lower income tax collections. Moreover, proposed tax reforms such as PIFITA and VAT on digital services
are only expected to be implemented in 2024,” she said in a Viber message.
Broken down, revenue collections rose 26.66% on-year to P440.7 billion in April.
Expenditures inched up 9% on-year to P373.9 billion in the same period. The Treasury attributed the increase in spending to subsidy disbursements to PhilHealth, capital expenditures of the public works and health departments, and interest payments.
“Moving forward, to remain prudent, we still think the government should fast track revenue collection measures to keep the budget deficit in check and ease pressure to incur more debt especially now with current interest rates still elevated,” Velasquez added.