MANILA — Improvements in the Philippine government’s revenue collections and spending was very apparent in July 2018 after a slip the previous month, the Bureau of the Treasury (BTr) reported Wednesday.
Revenues grew by 24 percent year on year in the seventh month to PHP241.7 billion. Collections by the Bureau of Internal Revenue (BIR), which account for about 70 percent of total revenues, went up 19 percent to PHP164 billion. Growth of revenues of the Bureau of Customs (BOC) registered a higher figure of 49 percent to PHP52.1 billion.
Expenditures during the month went up 34 percent to PHP328.1 billion, resulting in a budget gap of PHP86.4 billion, up 71 percent. As of end-July this year, budget deficit reached PHP279.4 billion, up 36 percent after spending posted higher growth compared to revenues. BTr data show that expenditures in the first seven months this year amounted to PHP1.93 trillion, 23 percent higher, year on year.
In a statement, the bureau said spending as of last July accounts for about 57 percent of the programmed PHP3.367 trillion expenditures for the year.
The government is firm on meeting its fiscal targets for the year, with revenues programmed to finance the government’s massive infrastructure program and social services.
During the same period, revenues rose 21 percent to PHP1.65 trillion, which BTr said accounts for 58 percent of the programmed PHP2.846.3 trillion collection for the year.
Philstocks Financial Research and Client Engagement head, Justino Calaycay, told the Philippine News Agency (PNA) that the government needs to work harder and deliver on its infrastructure program to lessen investors’ worries.
He said there is a need to address investors’ concerns, which is aggravated by external developments, such as fears of a possible spillover of Turkey’s financial meltdown. “Deficits have to be funded — time and again — by taking in more debt. The onus is on (Philippine) government’s ability to fast-track the roll-out of its ambitious infrastructure push,” he added. (Joann Villanueva/PNA)
