NG Fiscal Deficit for July 2014 Narrows to P1.8 billion; Year-to-Date Fiscal Deficit at P55.7 billion

  • Post category:News

29 August 2014 Manila, Philippines – The National Government (NG) recorded a P1.8 billion fiscal deficit in July as revenue generating agencies ramped up collection efforts. The July deficit is down 97% from the same period last year, resulting to a lower cumulative budget shortfall of P55.7 billion for the first seven months of 2014 compared to P104.5 billion in 2013.

Revenue Performance

Total revenues for the month amounted to P166.7 billion, registering a growth of15% compared to the same month last year. This brings year-to-date collections to P1.10 trillion, reflecting a 12% increment over comparable figures in 2013.

The Bureau of Internal Revenue(BIR) collectedP119.9 billion in July, posting a double-digit year-on-year increase of 20%, registering the highest growth in monthly collections attained for the year. In total, BIR collections has grown 10% year-on-year to P763.2 billion for the first seven months of 2014.

The Bureau of Customs(BOC) managed a 10% growth for the month of July with actual collections of P30.5 billion. BOC has raised P203.9 billion for the year registering an 18% year-on-year improvement in performance.

Bureau of the Treasury (BTr) income amounted to P7.5 billion in July, down 6% from the previous year due to lower interest earned from NG investments and deposits. Nevertheless, Total BTr income of P70.4 billion from January to July still increased by 23% year-on-year, mostly due to the increase in dividend collections and interest income.

Collections from other offices contributed P8.8 billion, which is 1% lower than collections last year. However, year-to-date revenue of P63.0 billion still indicates a 5% improvement in collections over the same period last year.

Expenditures

NG disbursements amounted to P168.5 billion in July, 15% or P29.4 billion lower than comparable figures last year. Year-to-date expenditures stands at P1.16 trillion, 6% higher than similar spending for 2013.

Interest payments (IP) for July declined by 10% year-on-year to P48.2 billion from P53.5 billion in 2013 as both domestic and foreign IP payments has gone down. Similarly, total IP of P208 billion for January to July is 1% behind the pace set last year.

Primary Surplus/ (Deficit)

Netting out interest payments from expenditures, NG recorded a P46.5 billion primary surplus for the month of July resulting to a cumulative primary surplus of P152.2 billion, P46.1 billion higher than its level over the same period in 2013.