Fiscal position swings to deficit in May

MANILA, Philippines -  The national government’s fiscal balance swung back to a deficit in May as public spending outpaced revenue collections, the Bureau of the Treasury (BTr) reported yesterday.

In its latest cash operations report, the BTr said the national government’s fiscal deficit amounted to P33.4 billion in May, a reversal of the P52.8 billion surplus recorded a month earlier.

The latest deficit figure was also wider than the P17.66 billion deficit incurred in May last year.

From January to May, the national government incurred a fiscal deficit of P63.6 billion, narrower by 15 percent than the P75.12 billion deficit registered in the same period last year.

A deficit occurs when government expenditures exceed the revenue that it generates.

According to Treasury data, revenue collections in May grew 14 percent, slower than the 20 percent growth in disbursements during the period.

Revenue in May increased to P228.3 billion from the P199.76 billion recorded the previous year, resulting in an eight percent growth in revenue collections year-to-date.

The Bureau of Internal Revenue (BIR) showed a five percent improvement in collections to P158.7 billion in May from P151.6 billion a year ago.

The Bureau of Customs (BOC) likewise recorded a 23 percent  increase in revenue to P39.6 billion in May, the fastest growth attained by the agency so far this year.

BTr’s income, which forms part of non-tax revenue, bounced back to P18 billion from P5.7 billion last year as government-owned and -controlled corporations (GOCC) started to remit dividends to the national government.

However, the Treasury’s income from January to May was still lower by 18 percent year-on-year at P48 billion, due to the decline in dividends from GOCCs and the drop in the income generated from the investments of the bond sinking fund and securities stabilization fund.

Non-tax revenue from other offices rose four percent to P9.3 billion this May.

Meanwhile, national government spending amounted to P261.7 billion in May, up from the P217.4 billion recorded in the same period last year. It also improved six percent to P1.06 trillion in the first five months from a year ago.

According to the BTr, interest payments in May went up 12 percent as some payments for Treasury-bonds were moved to May instead of April.

Net of interest payments, the national government’s primary fiscal balance slipped into a deficit of P12.5 billion in May, a reversal of the primary surplus posted last year.

But the government still managed to record a primary surplus of P68.7 billion in the first five months, wider by 13 percent than last year’s level.