Budget gap swells to P259.8 billion in 9 months

MANILA, Philippines – The National Government’s budget deficit ballooned to P259.8 billion in the first nine months of the year, up from the previous year’s P237.5 billion due to lower-than-programmed revenues, Finance Secretary Cesar Purisima said yesterday.

However, compared to the programmed ceiling of P273.7 billion for the January to September period, the budget deficit during the nine-month period is lower by P13.9 billion.

In September alone, the deficit widened to P31.7 billion from P27.5 billion a year earlier, Purisima said.

A budget deficit means that the government does not have enough funds for its expenses such as social services and infrastructure.

Purisima said the Aquino administration remains committed to containing the budget gap within the program for the year of P325 billion. “I am confident that it will hit P325 billion,” Purisima said.

The Bureau of Internal Revenue (BIR) fell short of its nine-month collection target of P620.5 billion by P13.2 billion but its collection year-on-year grew by nine percent to P607.3 billion.

The Bureau of Customs generated P191 billion in the first nine months, 19.2 percent lower than its target for the period of P210.2 billion but 15.5 percent above the year-on-year collections.

The Bureau of the Treasury’s income amounted to P45.5 billion from January to September, down 12.8 percent from P52.2 billion. Revenues from other offices also fell to P50.9 billion or 21.9 percent lower from P65.1 billion recorded a year earlier.

This brought total revenues in the first nine months to P894.7 billion, 6.5 percent higher than the P839.8 billion recorded a year earlier.

Revenues in September alone hit P91.9 billion, or 8.7 percent down from P100.7 billion a year ago.

Total expenditures amounted to P1.154 trillion in nine months, 7.2 percent up from P1.077 trillion disbursed a year earlier. September expenditures hit P123.6 billion, down 3.6 percent from September 2009’s disbursements of P128.2 billion.

Purisima said that given the frontloading in the first half of the year implemented by the previous administration, the National Government is “carefully calibrating spending as it tries to keep the deficit in check.”

“Notwithstanding, we will make sure that we do not sacrifice economic growth while we pursue prudent expenditure discipline,” he said.

Budget Secretary Florencio Abad said the government still has P294.4 billion to spend in the remaining three months of the year or an average of P98 billion each month.

However, Abad said the government is also bracing for the expenses to be incurred for relief and rehabilitation efforts in the wake of typhoon Juan which battered some parts of the northern Philippines early this week. –Iris C. Gonzales (The Philippine Star)