Budget ...

BIR, for its part, collected P848 billion in the first six months, higher by eight percent from last year’s level, but four percent below the target for the period.

The BOC also saw a 10 percent improvement in collections at P210.3 billion, but fell short of the P217.7 billion target for the first half.

The shortfall was cushioned by non-tax revenue, which amounted to P107.3 billion, 26 percent higher than the P85.2 billion target. However, this was down nine percent from the P118 billion posted the same period in 2016.

Finance Secretary Carlos Dominguez said the BIR and the BOC would make up for the deficit in their collections by the third quarter.

“We are expecting P30 billion from Mighty (Corp.), which will wipe out the P16.6 billion undercollection. This also proves that we need the tax reform so we can collect more taxes,” Dominguez said.

Meanwhile, disbursements from January to June grew nine percent to P1.33 trillion from P1.07 trillion last year. It likewise met the P1.336 trillion spending program of the government for the first semester.

Sought for comment, Emilio Neri, chief economist at the Bank of the Philippine Islands (BPI), said the latest national government performance should translate to sustained rapid growth for the economy in the second quarter of the year. The country’s economy expanded 6.4 percent in the first quarter.

“While the collection shortfall is somewhat of a concern, it actually boosts the DOF’s campaign for TRAIN (Tax Reform for Acceleration and Inclusion Act) phase one in the Senate,” Neri said.