Fiscal rebound: Revenue surge spurs 44.9% reduction in government budget shortfall

The national government’s budget shortfall narrowed by 44.89 percent in July as revenue collections grew faster year-on-year versus expenditures.

According to the Bureau of the Treasury (BTr), the budget deficit in July amounted to P47.8 billion, marking a notable drop from the P86.8 billion recorded in the same month of the previous year. The cumulative fiscal performance year-to-date shows a budget gap of P599.5 billion.

This figure is also down by 21.22 percent when compared to the P761 billion deficit reported during the first seven months of 2022.

July witnessed a remarkable increase in revenue collection for the national government, reaching P411.7 billion, a significant jump of 33.4 percent from the P308.6 billion reported in the corresponding period a year earlier.

This positive momentum in revenue collection has contributed to a year-to-date total collection of P2.27 trillion, indicating an 11.58 percent increase over the P2.04 trillion collected during the same period last year.

The Bureau of Internal Revenue (BIR) played a major role in this growth, reporting a 38.37 percent jump in revenues to P273.1 billion in July.

Year-to-date, the BIR’s revenue grew 12.2 percent to P1.49 trillion.

On the other hand, the Bureau of Customs’ total collections dropped by 12.6 percent to P73.1 billion.

Despite the decline, the BOC managed to improve its cumulative collection by 5.45 percent to P506.5 billion.

Meanwhile, disbursements by the national government increased by 16.2 percent to P459.5 billion.

This was primarily due to higher disbursements recorded in the Department of Social Welfare and Development for its social protection programs, as well as in the Department of Health and Department of Agriculture for their respective health and agriculture initiatives.

The BTr also noted that spending in July expanded due to significant infrastructure outlays by the Department of Public Works and Highways for its road network development program, as well as by the Department of Transportation in its rail transport projects.

Year-to-date, a total of P2.87 trillion has been spent, marking a 2.66 percent increase from the same period the previous year.