MANILA – A ranking official of the Department of Finance expects the budget gap increasing in the remaining months of the year as the government implements a catch-up spending plan.
“With the catch-up spending plan, we are now executing, we expect the budget deficit to widen in the remaining months of this year. We are speeding up the execution of key projects of the infrastructure modernization program,” Finance undersecretary Gil Beltran told senators on Thursday.
The 57.8-percent year-on-year decline of the Philippine government’s budget gap in the first seven months of 2019 has been traced to the inability to spend according to program given the delay in the approval of this year’s national budget.
Bureau of the Treasury data show that as of end-July this year, the government budget deficit amounted to P117.9 billion, lower than the P279.4 billion during the same period last year.
Revenues rose by 9.64 percent to P1.811 trillion, but expenditures contracted by 0.11 percent to P1.929 trillion.
Of the total tax revenues amounting to P1.617 trillion, the Bureau of Internal Revenues collected P1.246 trillion, up by 10.47 percent against year-ago level, while the Bureau of Customs contributed P357.7 billion, 7.88 percent up year-on-year.
Beltran said Finance department officials are optimistic of the continued improvement of revenue collections through administrative reforms.
He noted the approval of the remaining tax reform measures will further boost collections since the Comprehensive Tax Reform Program “will make our tax system simpler, fairer and more efficient.”
“In both revenue agencies, we are automating processes and strengthening control measures against slippages,” Beltran said.
“We will continue to implement the administrative reforms and revenue-enhancing programs to meet our revenue collection targets and sustain the country’s growth,” he added.
DOF officials continue to engage with lawmakers for the passage of additional tax reform measures, such House Bill 1026 which aims to impose higher excise taxes on alcohol products and electronic cigarettes. This measure has been approved on third reading.
Beltran noted the “passage of the remaining tax reform packages and other economic reforms can surely help bring us to ‘A’ rating territory within the next couple of years.”
“Completing the reform measures will guarantee the revenue flow and the equitable sharing of the contributions to underwrite our social and infrastructure programs. It will also ensure fiscal stability long into the future,” he stressed.
“More importantly, passing the reforms will help us ensure faster GDP (gross domestic product) growth, lower poverty rates, and open more opportunities to all law-abiding Filipinos. They will also complete the President’s promise in the zero-to-ten-point socioeconomic agenda,” he added. (PNA)
