As the economy barely grew in the first quarter, recent data from the Finance Department show a drop in revenue in the government’s top revenue generating agencies, the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC).
The Department of Finance (DOF) revealed the two agencies’ collection reached Php 600.86 billion, which is more than Php 100 billion short of their Php 757.12 billion target for the first quarter.
“Our tax collections are definitely going to be a bit lower than our original target but as I said, these are things that we can finance,” DOF Secretary Carlos Dominguez III said.
DOF pointed out the decline is expected due to the enhanced community quarantine. The Development Budget Coordination Committee (DBCC) said revenue decline may reach Php 318 billion if economic growth will reach negative one (-1) percent but the DOF assured the government has sourced enough funds as the administration has been prudent with the budget.
At the onset of the administration, Gross Domestic Product (GDP) and revenue collection have increased at a higher rate in 22 years. Meanwhile, the Philippine Peso has remained stable despite a collapse in the global market.
The DOF said the Philippines ranks third in ASEAN countries whose currencies remain stable. A stable currency means a stable inflation rate and less fluctuations in attracting investors.
RCBC Chief Economist Michael Ricafort said the economic team needs more tools to help the economy through fiscal stimulus “or increase Government spending and they may borrow for the meantime to assist the most vulnerable sectors of the economy.” – Report from Naomi Tuburcio
