Budget deficit narrows to P33.5 B in Q1

The country’s budget deficit narrowed in the first quarter from year-ago levels and even missed the government’s target as the growth in revenues outpaced that of spending, the Department of Finance (DOF) reported yesterday.

The country incurred a deficit of P33.5 billion in the first quarter, lower than the P84.1-billion shortfall recorded in the same period last year and was far below the P98.1-billion target for the period.

Government revenues reached P470.5 billion during the three-month period, up 18 percent from the P398.4 billion recorded last year. The current figure, however, fell short of the P484.1-billion target for the period.

“Robust revenue growth drives the expansion of our fiscal space. This is a critical foundation of the virtuous cycle we are consolidating towards the last year of this administration,” Finance Secretary Cesar V. Purisima said.

Of the total revenues, the Bureau of Internal Revenue brought in P307.1 billion, while the Bureau of Customs turned in P92.3 billion. The Bureau of Treasury also remitted P37.9 billion, while other offices earned P33.3 billion.

Expenditures in the first quarter also grew four percent to P504 billion from P482.5 billion, but was still 13 percent below what was expected.

This was amid a six-percent rise in other expenses to P403.4 billion, while interest payments fell two percent to P100.6 billion.

Netting out interest payments, the government saw a P67.1 billion primary surplus in the first quarter, more than triple the P19 billion recorded last year.

“We are no doubt in a very good place; foreign and domestic institutions alike have recognized our sound position amid global economic volatility,” Purisima said.