Gov’t swings back to deficit in May

  • Page Views 1160
  • Government spending turned to deficit in May, reversing the surplus that was recorded a month ago.

    The national government said the deficit hit P32.9 billion, slightly lower, by 2 percent, than last year’s level and is 32 percent lower than programmed.

    On a year-to-date basis, the government posted a P138.7-billion deficit, more than double the level posted a year ago.

    The lower-than-expected deficit was achieved on account of higher revenue collections which exceeded the program by P81.5 billion, up 7 percent, outpacing the 1 percent or P15.2 billion increase in spending.

    Revenue collections in May hit P259 billion, up 13 percent, bringing the year to date collection to P1,186.3 billion, up 19 percent.

    Tax collection by the Bureau of Internal Revenue (BIR) raised P174.7 billion in May, up 10 percent.

    The government said the BIR was able to sustain double-digit growth for the first five months of the year leading to a 15 percent increase in January to May collections at P830.5 billion.

    “Deducting tax refunds resulted in a net collection of P172.0 billion for May with YoY (year-on-year) growth of 8 percent, bringing year- to-date collections and growth to P827.7 billion and 15 percent, respectively,” the Department of Finance said in a statement.

    Collections by the Bureau of Customs (BOC) meanwhile hit P53.6 billion, up 35 percent. On a year to date basis, cumulative collections hit P230.7 billion up 31 percent. Net of tax refunds, BOC collections for the month settled at P52.7 billion, up 33 percent YoY while the January to May level of P229.3 billion improved by 31 percent over the same period in the previous year. The increase was due to the combined effects of the weaker peso, higher oil price, and higher import volumes.

    The Bureau of the Treasury meanwhile posted an income of P21.4 billion, up 19 percent due to higher dividends on shares of stocks held by the government and remittance of shares in the Philippine Amusement and Gaming Corp . and the Manila International Airport Authority profits.

    “The year-to-date BTr income of P58.4 billion has increased by 22 percent from the same period last year,” the DOF said.

    “Non-tax revenues from other offices grew 12 percent year-on-year to reach P10.6 billion for the month, resulting to a 28 percent growth in year-to-date collections of P61.1 billion,” it added.

    Disbursements by the government meanwhile hit P291.9 billion, up 12 percent.

    For the first five months of the year, disbursements hit P1.325 trillion, up 25 percent.

    Meantime primary expenditure (total disbursements net of interest payment) reached P1.183 trillion, 28 percent higher.

    Interest payments totaled P21.1 billion. Foreign interest payments hit P2.5 billion generated the uptick, mainly due to peso depreciation and an increase in rates for outstanding floating rate loans.

    “This was partially offset by lower domestic payments worth P18.6 billion owing to maturities of various fixed rate and retail bonds in 2017,” the government said.

    The cumulative interest payment however hit P141.4 billion, up 7 percent due to domestic coupon payments for RTBs (retail treasury bonds) issued in April and December last year.

    (R. CASTRO, Malaya)

    Share

    New Posts Recently publish post More

    • 29 July 2021
      1 day ago No comment

      With multiple medals, Tokyo 2020 an Olympic banner year for Philippines

      The Philippines will finish with multiple medals in the ongoing Olympics. This means that the Tokyo 2020 Olympics will represent a banner year for the country. The Philippine Daily Inquirer observed that this will be the first time since the Los Angeles 1932 Games that the Philippines will win ...

    • 22 July 2021
      1 week ago No comment

      Lolit Solis hints at Kris Aquino’s possible run in 2022

      Will Kris Aquino run in the national elections in 2022? This was the question of veteran entertainment journalist Lolit Solis who promised to vote for Kris should she decide to run in the national elections next year. But Lolit advised Kris not to run for mayor in Quezon City ...

    • 22 July 2021
      1 week ago No comment

      Philippines administers 15.6 million COVID-19 shots

      The Philippines has administered 15.6 million doses against the COVID-19 virus. Harry Roque, spokesperson of President Rodrigo Duterte, shared this number in a media briefing Wednesday (July 21). Of the 15.6 million does administered by the government, Roque said 10,585,261 million persons got their first dose. As well, 5,031,301 ...

    • 17 July 2021
      2 weeks ago No comment

      First Nations peoples condemn tweet on Church burnings

      At a press conference in Vancouver, Pentecostal assistant minister Jenn Allan-Riley, a 60s scoop survivor whose mother attended residential school, called for the wave of church arsons to stop. She adds that “Burning down churches is not in solidarity with us Indigenous people. As I said, we do not ...

    • 17 July 2021
      2 weeks ago No comment

      Paki-Ayos: A New Service for Filipinos in Canada

      Paki-Ayos Services Inc. will do errands for you in the Philippines Do you need something done in the Philippines, but air fare, accommodations, and pasalubong cost too much for you to go back home? A new service, Paki-Ayos, is here to help. Forget about going on a very expensive ...

    %d bloggers like this: