Weak public spending continues in Q1, trimming budget deficit

The national government’s fiscal gap dropped by more than a quarter in the fist three months of the year after public spending slowed to a low single-digit growth despite the Duterte administration’s pledge to raise investments in infrastructure.

The Bureau of the Treasury reported yesterday that the national government incurred a R83-billion budget deficit during January to March period, down by 26 percent compared with R112.5 billion in the same period last year.

During the quarter, total government expenditures grew at a slower pace of 4.0 percent to R615.4 billion from R591 billion in the previous year.

Of that amount, interest payments reached R97.9 billion, down by 5.0 percent from R102.6 billion. On the other hand, other spending, including infrastructure investments, expanded by 6.0 percent to R517.5 billion.

Meanwhile, total revenues collected by the national government posted a 11 percent growth at end-February to R532.4 billion from R479 billion in the same period last year.

The Bureau of Internal Revenue (BIR), the government’s main tax agency, raised R370.4 billion during the quarter, while the Bureau of Customs had collected R104.1 billion and other offices contributed the remaining R5 billion.

Non-tax revenues, however, fell by 2.0 percent between January and March to R52.8 billion from R53.6 billion owing to lower income generated by the Treasury, which fell to R22.9 billion from R24.9 billion a year before.

Other offices with non-tax revenues, meanwhile, registered a 6.0 percent increase in income at end-February to R517.5 billion from R488.8 billion.

In March alone, the government’s budget deficit