Gov’t incurs P15.9-B deficit in January
The government incurred a budget deficit of P15.9 billion in January, as revenues fell and as the Department of Budget and Management accelerated spending.
The January deficit reversed the P13.424 billion surplus recorded in the same period last year, the Department of Finance (DOF) yesterday reported.
Revenue collections reached P126.4 billion for the month while disbursements reached P142.3 billion during the period.
The government has been trying to spend more to pump-prime the economy following the slower- than- expected growth recorded last year.
The economy, as measured by gross domestic product, grew by only 3.7 percent last year, significantly slower than the 7.6percent GDP growth recorded in 2010.
Of the P126.4billion revenues generated in January, the Bureau of Internal Revenue (BIR) collected P85.1 billion while the Bureau of Customs raised P22 billion or a growth of 14 percent and seven percent, respectively, compared to same month last year.
The Bureau of the Treasury’s income was recorded at P11.1 billion while collections from other offices hit P8.2 billion.
The January 2012 revenues fell below the P135.911-billion revenues recorded in the same month last year.
Expenditures, meanwhile were higher by 16 percent as the government has been making up for low state spending last year.
Finance Secretary Cesar Purisima said the latest fiscal position reflects the government’s efforts to boost spending.
“The National Government’s fiscal performance for the first month of the year was marked by continued disbursement acceleration, primarily intended to boost economic growth,” Purisima said.
Purisima said the month’s revenues could have been higher if dividends from state agencies came during the month as what happened in January 2011.
Data from the Finance department showed that Treasury collections decreased by 64.3 percent in January, primarily due to the time difference in the remittance of dividends from government-owned and-controlled corporations (GOCCS).