Government posts P28.8-B budget surplus in Aug

MANILA, Philippines — The national government generated a fiscal surplus of P28.8 billion in August on the back of stronger tax collections during the period, the Bureau of the Treasury (BTr) reported yesterday.

According to Treasury data, the latest figure was narrower than the P32.6 billion surplus recorded in the same period last year, but a reversal of the P50.51 billion deficit incurred in July 2017.

Furthermore, the BTr said the P28.8 billion surplus reduced the government’s fiscal deficit from January to August to P176.2 billion from the P205 billion recorded as of end-July.

Compared to last year, however, the year-to-date deficit is still wider by about P37.8 billion or 27 percent.

A surplus occurs when government’s revenues exceed the amount it spends.

Treasury data showed revenue in August rose 10 percent to P230.4 billion from P209.6 billion a year ago. The bulk of the revenue came from taxes which increased to P212.3 billion during the month.

The Bureau of Internal Revenue, for its part, collected P171.7 billion, nine percent up from P157.5 billion in the same month in 2016.

Meanwhile, the Bureau of Customs (BOC) also generated 16 percent more revenue at P38.3 billion from P33.1 billion last year.

The BTr’s income in August also went up six percent to P6.2 billion due to higher government service income resulting from the one-off remittance of the national government’s share from the profit of the Alabang Stock Farm Project amounting to P1.2 billion.

Year-to-date, the total revenue of the national government amounted to P1.6 trillion, eight percent up from last year’s P1.48 trillion.

Meanwhile, the Treasury said disbursements continued to exhibit double-digit growth for the fourth consecutive month.

For August alone, government spending rose 14 percent to P201.6 billion from the P177 billion recorded in the same month in 2016.

The Treasury said interest payments climbed 12 percent year-on-year to P26.4 billion in August from a year ago due to foreign payments.

From January to August, government expenditures amounted to P1.78 trillion, 10 percent higher than last year’s P1.62 trillion.

Excluding interest payments, the BTr said the national government attained a primary surplus for August amounting to P55.2 billion. Year-to-date, primary balance also returned to a surplus of P46.4 billion.