Press Release
NG revenues rose by 9.7% in the first semester of 2019, outstripping nominal GDP growth which registered 7.0% for the semester.
Tax revenues grew by 10.1%, also exceeding the 7.0% nominal GDP growth, with BIR collections rising by 10.6% and BOC collections rising by 8.5%. This is due to second phase of TRAIN 1 and continued tax administration reforms.
Non-tax revenues rose by 6.9% due to higher collections of dividend remittances on national government shares of stocks, guarantee fees, and share in the profits of the Philippine Amusement and Gaming Corporation or PAGCOR.
Expenditures plunged by 0.8% in the first semester of 2019, the first drop experienced during the first semester since 2011. This is a significant reversal from the 20.5% rise in the same semester of 2018. This is due to the 4 and ½ months delay in the approval of the General Appropriations Act by Congress.
Revenue effort rose by 0.44 percentage point to 17.52% in the first semester of 2019 compared to 17.08% in the same semester of last year. Tax effort also rose by 0.43 percentage point, from 15.20% to 15.63%.
Expenditure effort declined to 18.00%, lower than the 19.42% recorded in the first semester of 2018 due to the reenacted budget. The moderated growth in expenditures led to a lower NG deficit, which settled at 0.48% of GDP.
DOF View
The delay in the passage by Congress of the 2019 Budget weakened expenditures and the domestic economy. National Government (NG) underspending was estimated at around PHP 178 Billion. This is about 2% of first semester nominal GDP.
A catch-up program has been adopted by the implementing agencies. This will boost growth performance for the second semester.
