The national government’s budget deficit fell in June from a year ago, on stronger revenue collection.
Data from the Bureau of Treasury show that the government deficit reached P209.1 billion in June, lower than P225.4 billion registered in the same period last year as revenue collection grew faster than government expenditures.
The deficit in the first six months, however, widened 11.27 percent to P613.9 billion year-over-year, but was 7.24 percent below the P661.8-billion midyear goal on better-than-programmed revenues.
Government revenue in June rose 10.93 percent year-on-year to P296.5 billion, surpassing the previous year’s collection by P29.2 billion.
Total collections in the first half reached P2.15 trillion, up by 15.56 percent from a year earlier. Taxes comprised 85 percent of the six-month revenue and grew by 10.05 percent from P1.67 trillion in the previous year.
The Bureau of Internal Revenue’s (BIR) collection for June rose 4.71 percent to P172.5 billion, net of the P4.3 billion tax refund. The agency’s first-half collection amounted to P1.36 trillion, outpacing the outturn in the same period last year by 11.72 percent but missing the P1.40 trillion midyear program by 2.92 percent.
Collections by the Bureau of Customs (BOC) reached P74.6 billion in June, up by 0.67 percent from a year ago.
The Bureau of the Treasury (BTr) brought in P7.4 billion in June, down by 30.99 percent from the 2023 comparable collection on lower dividend remittance and income from BTr-managed funds.
Meanwhile, total disbursement in June reached P505.6 billion, outperforming the previous year’s actual expenditures by 2.62 percent or P12.9 billion.
The increase was attributed to the implementation of capital outlay projects of the Department of Public Works and Highways and the Department of National Defense under its Revised AFP Modernization Program, the preparatory activities of the Commission on Elections for the 2025 National and Local Elections and the higher national tax allotment shares of LGUs. The growth in spending was tempered by lower subsidy releases and net lending assistance to GOCCs.
The cumulative expenditures in the first semester closed in at P2.76 trillion, representing a 14.58-percent expansion from last year’s and outpacing the P2.74 trillion midyear program by 0.90 percent or P24.6 billion.
The government posted primary expenditures (net of interest payment) of P450.0 billion, marking a 2.30-percent increase from last year’s level.
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