MANILA – The national government’s budget deficit widened in the first five months of the year as disbursements accelerated, the Department of Finance (DOF) said recently.
The deficit reached P138.7 billion in January to May, up 118.2 percent from P63.6 billion a year earlier, the DOF noted in its Economic Bulletin.
Total revenue stood at P1.186 trillion, up 19 percent from P996.5 billion, while public spending reached P1.325 trillion, up 25 percent from P1.06 trillion.
The 19-percent growth in national government revenue was attributed to the Tax Reform for Acceleration and Inclusion (TRAIN) law and improvements in tax administration.
Tax revenue amounted to P1.066 trillion, up 18.4 percent from P901 billion, including P827.7 billion from the Bureau of Internal Revenue, P229.4 billion from the Bureau of Customs, and P9.6 billion from other government offices.
Non-tax revenue totaled P119.7 billion, up 25.2 percent from P95.6 billion.
The 25-percent growth in government expenditures was the result of a 42.4-percent increase in infrastructure spending and other capital outlays.
At 2.1 percent of the gross domestic product (GDP), the budget deficit remains short of the 3-percent deficit-to-GDP target.
“Fiscal space expanded by TRAIN-1 and tax administration enabled government to boost investments and growth. Public construction expanded by 25.1 percent in the first quarter, boosting GDP growth by 0.4 percentage point while government consumption rose by 13.6 percent, contributing an incremental 1.4 percentage points to growth,” the DOF said.
“Strong macroeconomic fundamentals backed by tax reform and the Build, Build, Build program will continue to boost economic growth closer to the optimum 7-8 percent level as the competitiveness of the economy rises and more jobs are created,” it said. (GMA News)
