Gov’t incurs P19.9-B budget deficit in May

The country recorded a budget deficit of P19.9 billion in May, a sharp 107.3 percent increase from the P9.6 billion shortfall recorded in the same month last year, the Department of Finance (DOF) reported yesterday.

Despite the wider deficit, Finance Secretary Cesar Purisima explained that the government’s budget shortfall remained under control and that the Aquino administration has enough fiscal space to support the country’s economic growth.

The latest figure was a complete reversal from the P31.024 billion surplus booked in April as revenues grew 10.8 percent compared to the 9.1 percent rise in expenditures.

The government normally books a surplus in April due to the deadline in the payment of taxes.

Revenues went up by 9.4 percent to P131.403 billion from P120.088 billion. The tax take of the Bureau of Internal Revenue (BIR) increased 7.3 percent to P94.55 billion while that of the Bureau of Customs (BOC) rose by 15.5 percent to P25.23 billion.

On the other hand, revenues generated by other offices from privatization went up by 8.7 percent to P6.583 billion while earnings of the Bureau of Treasury (BTr) jumped 24.5 percent to P5.039 billion.

Government spending surged 16.7 percent to P151.304 billion in May compared to P129.689 billion in the same month last year.

For the first five months of the year, the government’s budget deficit soared by 138.8 percent to

P22.786 billion from P9.54 billion in the same period last year. This after gov-ernment spending rose 13.1 percent to P668.431 billion from P591.041 billion in the same period last year.

Government revenues rose 11.6 percent to P645.645 billion from P581.501 billion as BIR collections increased by 12.5 percent to P439.816 billion while the tax take of the BOC went up by 12.4 percent to P120.126 billion.

The Philippines booked a stronger-- than-expected gross domestic product (GDP) growth of 6.4 percent in the first quarter of the year from the revised four percent in the fourth quarter.