National Government Budget Deficit at P32.2 Billion in July 2015
Year-to-date balance dips into deficit at P18.5 billion
The National Government’s budget balance in July 2015 was at a deficit of P32.2 billion, exceeding last year’s deficit of P1.8 billion for the period on the back of robust expenditure growth. Year-to-date, the budget balance was at a deficit of P18.5 billion, lower than the P55.7 billion posted last year.
The primary balance for the month was at a surplus of P20.9 billion, while year-to-date primary surplus registered at P190.7 billion, P38.5 billion higher compared to the P152.2 billion posted this time last year.
Treasury Exceeds Target Income for the Year
Total revenues for the month reached P178.5 billion in July, 7% or P11.7 billion higher than the year-ago figure. Meanwhile, total revenues for the period of January-July reached P1.26 trillion, reflecting a 15% growth year-on-year.
The Bureau of Internal Revenue (BIR) hauled in P118.2 billion for the month, bringing year-to date collections of the BIR to P824.1 billion, growing 8% or P60.9 billion from year-ago figures.
The Bureau of Customs (BOC) raised P30.0 billion in July, making January-July figures amount to P208.7 billion. This tops up year-ago figures by 2%. Even as oil weighted average values of imported oil continue to sag with a 32% year-on-year decline, total customs collections for January to July still beat year-ago figures by 2%, propelled by the 9% improvement in collections from non-oil commodities.
Meanwhile, income from the Bureau of the Treasury (BTr) amounted to P14.2 billion for July, up by 89% or P6.7 billion year-on-year, owing to higher income from BSF/SSF investments and dividends on shares of stocks held by the government. January-July income amounted to P81.2 billion, 15% higher than year-ago figures. This means that the Treasury has already exceeded its P60.7 target for the full year.
Expenditures on Track to Drive Q3 Growth
National Government disbursements for the month totaled P210.7 billion, reflecting formidable year-on-year growth of 25%. For the period of January to July, expenditures reached P1.28 trillion, reflecting an increase of 11% from year-ago levels.
Year-to-date, interest payments amounted to P209.2 billion, which is still within the government’s program for the period. Interest payments for January-July 2015 accounted for 16% of expenditures, improving on the 18% share recorded last year.
Finance Secretary Cesar V. Purisima said, “The pace of expenditure growth we are seeing has a clear positive trend since we adopted a whole-of-government approach to addressing underspending. Expenditures are on track to drive our growth for the third quarter (Q3).
We will continue to unblock constraints to growth. It is encouraging to note that we are starting the quarter with a better footing on the public expenditure side. We are committed to making the trend lines hold and sustain this uptick. We have enough fiscal firepower to keep bright what they have been calling the region’s bright star.”
