Deficit more than doubles

THE GOVERNMENT more than doubled its first semester fiscal deficit in July as it posted its highest monthly spending performance so far this year.

The shortfall hit P39.249 billion last month, more than the P34.482 billion incurred in January to June and raising the tally for the year so far to P73.731 billion.

With the cap set at P183.343 billion for the first three quarters of the year, the government still has fiscal space of nearly P110 billion for August and September.

The government collected P123.309 billion in July to take the seven-month count to P884.23 billion, up 12.1% from a year earlier.

The Bureau of Internal Revenue (BIR) contributed P604.676 billion, up 13.7%, while the Bureau of Customs (BoC) added P167.816 billion in a 12% gain.

The government must earn P285.578 billion in August and September to meet the three quarter target of P1.170 trillion. Of this, the BIR must collect P195.621 billion to hit its goal of P800.297 billion, while the BoC must bring in P89.233 billion in line with its target of P257.049 billion.

“With Senate hearings resuming, the department is keen to see the passage of the bills on the reform of excise taxes on tobacco and alcohol, and the rationalization of fiscal incentives,” Finance Secretary Cesar V. Purisima said in a statement.

The government, meanwhile, spent P162.558 billion in July, the highest monthly expenditure level so far this year. Public spending for the January-July period rose to P957.961 billion, up 15.1% from last year.

“Disbursements across the national government are definitely gaining momentum, now that we’ve entered the second semester of 2012,” Budget Secretary Florencio B. Abad said in a separate statement.

“We can expect the continued acceleration of government spending in the coming months, bolstered by increased activity in project implementation among departments and agencies,” he added.

“Although we’re very alert to challenges posed by global financial uncertainties, we are nonetheless confident that the Philippine economy can establish sufficient fiscal stability and growth in 2012.”

The government must disburse P395.19 billion in August and September to meet its spending program of P1.353 trillion for the first three quarters of 2012.

The government aims to collect P1.561 trillion this year to help finance expenditures of P1.84 trillion. The deficit has been capped at P279.1 billion, equivalent to 2.6% of gross domestic product. –DIANE CLAIRE J. JIAO, Senior Reporter, Businessworld