Budget deficit widens to P154.5 B in H1

The national government’s fiscal deficit widened in the first half due to lower than expected revenue during the period, the Bureau of the Treasury (BTr) reported yesterday.

According to the latest cash operations report of the Treasury, the budget deficit in the first semester rose 28 percent to P154.5 billion from the P120.3 billion recorded in the same period in 2016.

A deficit occurs when government expenditures exceed the revenue that it generates.

Budget Secretary Benjamin Diokno said the budget deficit during the first six months was also higher than the P143.8 billion programmed by the government for the period.

However, Diokno said the higher than expected budget deficit “should not be a cause for concern” as the annual deficit target is P482.1 billion.

He added the deficit reflects the improvement in spending during the period.

“Expenditures is on the dot. Underspending, the plague of the previous administration, appears to be a thing of the past,” Diokno said.

According to Treasury data, revenue collection in the first six months rose seven percent to P1.18 trillion from P1.10 trillion in the same period last year.

However, this is one percent or P16.6 billion behind the government’s program of P1.19 trillion for the first semester, due to behind-target tax collections from the Bureau of Internal Revenue and the Bureau of Customs.