THE Philippines booked a budget deficit of P250.9 billion in September this year, higher by P71.2 billion compared to the same month last year, the Bureau of Treasury said on Wednesday, Oct. 25.
However, slower government spending since the start of the year also meant that the year-to-date budget deficit narrowed to P983.5 billion, down by 2.89 percent or P29.3 billion compared to the same period last year.
The cumulative deficit is also lower by 11.1 percent or P123 billion than the P1.106 trillion target, Treasury said. The agency also noted that after nine months, the government has only hit around two-thirds of its planned P1.5 trillion deficit for the year.
Analysts have said that government underspending was a factor in the slower gross domestic product (GDP) growth posted in the second quarter of the year. Economists have said that fiscal spending needs to ramp up to compensate for the slower growth in spending by consumers and businesses amid elevated inflation and high interest rates.
Finance Secretary Benjamin Diokno earlier said he is confident that stronger government spending in the second half will give the economy a boost. (ABS-CBN News)
