Spending down 15 pct in July

MANILA, Philippines (Xinhua) - Philippine government spending declined by 15 percent on year to P168.5 billion ($3.86 billion) in July, the Department of Finance (DOF) said today.

DOF data showed that government expenditures fell in July despite the increase in the collection of revenue-generating agencies during the period.

Philippine government expenditures include spending for infrastructure and capital outlays and operating expenses of state agencies such as utilities and salaries for employees.

Lower spending and higher revenue collection resulted in a 97- percent year on year decline in the government's fiscal deficit in July. Budget shortfall during the period fell to P1.8 billion ($41.23 million), from P53.2 billion ($1.21 billion) recorded a year ago.

Meanwhile, the collection of revenue-generating agencies rose by 15 percent on year to P166.7 billion ($3.81 billion) last month.

In January to July, Philippine government expenditures rose by 6 percent on year to P1.16 trillion ($26.57 billion).

Fiscal deficit during the seven-month period amounted to P55.7 billion ($1.27 billion), nearly half of the budget shortfall posted a year ago.

Philippine officials said Thursday that the government will ramp up spending in the coming months to boost the country's economic growth.  

The National Economic and Development Authority said government spending in the second quarter was a "cause for concern" as it registered flat growth during the period.