Fiscal deficit widens in November to P60.9 billion

MANILA, Philippines — The government’s fiscal deficit widened in November as the government showed a strong double digit growth in spending, the Bureau of the Treasury (BTr) reported yesterday.

According to the latest cash operations report of the Treasury, the national government incurred a budget deficit of P60.9 billion in November, 55.64 percent higher than the P39.1 billion recorded in the same month last year.

This occured as disbursements rose by 22.36 percent, outstripping the 17.35 percent growth in revenues during the period.

From January to November, the government’s fiscal deficit reached P409.1 billion, which is 14.27 percent narrower than the P477.2 billion in the same period last year. 

A deficit occurs when the government spends more than the revenues that it generates.

Based on Treasury data, government expenditures in November, recovered, growing by 22.36 percent to P365.6 billion from P298.8 billion in the same month last year.

The BTr attributed this to the increase in primary expenditures (or spending net of interest payments), which jumped 27.06 percent to P348.3 billion from P274.2 billion a year ago.

 “The catch-up performance in November boosted spending for the first 11 months to P3.3 trillion, lifting the cumulative disbursement growth to 6.73 percent year-on-year or P208.2 billion,” the BTr said.

Year-to-date expenditures is already equivalent to 87.8 percent of the P3.76 trillion spending program for the full year, leaving a balance of P457 billion.

The government has been implementing catch-up measures to offset the impact of the four-and-a-half month delay in the passage of the 2019 budget and the election ban on spending.

Meanwhile, Treasury data also showed that revenues climbed by 17.35 percent to P304.7 billion in November from P259.7 billion a year ago.

The bulk or P284.6 billion of the amount came in the form of tax revenues, while the remaining P20.1 billion was from non-tax collections.

The Bureau of Internal Revenue (BIR) collected P232.1 billion in November, marking a 20.83 percent increase year-on-year, which is the biggest growth performance of the agency so far.

Likewise, collections of the Bureau of Customs’ during the month improved by 5.24 percent to P50.4 billion from P47.9 billion last year.