Budget swings to P22-B deficit in Sept

The Aquino administration caught up on its budget program by the end of the third quarter – helped by a swing to a deficit in September – but the year-to-date tally remained way below this year’s cap.

According to the Bureau of Treasury, the budget deficit – which indicates more revenues spent than earned – totaled P22.1 billion in September, shifting from a surplus of P15 billion in August and four times wider than last year’s P5.2-billion shortfall.

From January to September, deficit reached P25.5 billion, down from P31.1 billion a year ago and accounted for only 11 percent of the nine-month cap of P229.5 billion.

The government has set a deficit cap of P283.7 billion this year.

While the deficit remains controlled, Finance Secretary Cesar Purisima said this is no reason for “piecemeal revenue eroding measures” such as those that lower income taxes pending now in Congress.

“We agree with the need to reform our tax system, but since the problems with it are structural in nature, we urge fiscal responsibility in considering tax reform in a comprehensive and holistic manner,” Purisima said.

“Sustaining our momentum requires balanced and responsible policies,” he added.

For his part, Budget Secretary Florencio Abad assured the public government spending “will continue to accelerate” going into the last three months of the year.

“The last quarter will be better. It will continue to improve as we go into the last months of the year,” Abad told reporters on the sidelines of a briefing yesterday.

For September alone, revenues amounted to P164.1 billion, up six percent year- on- year. Disbursements, meanwhile, totaled P186.2 billion, an improvement of 17 percent.

For the first nine months, revenues reached P1.605 trillion, while disbursements totaled P1.631 billion. Both figures were up 13 and 12 percent, respectively.