Nat’l gov’t fiscal position improved to surplus of P4.9B in April —Treasury

The national government’s fiscal balance reverted to a surplus in April as state revenues exceeded spending during the period.

Data released by the Bureau of the Treasury (BTr) showed the government posted a budget surplus of P4.9 billion last month, compared to a deficit of P44.4 billion in the same month last year.

The Treasury attributed the budget surplus to “faster year-over-year revenue collection growth of 19.19% against the marginal 1.98% increase in public expenditures.”

From January to April, the resulting fiscal position remained at a deficit of P311.9 billion, albeit lower by 14.76% compared to the budget shortfall of P365.9 billion in the first four months of 2021.

Revenues

In April, state collections reached P348 billion, up by P56 billion from P291.9 billion in revenues in the same month of 2021, "as all government collecting agencies exhibited positive outturns," the BTr said.

This brought year-to-date revenue to P1.132 trillion, up 14.56% from P988.4 billion year-on-year. Taxes comprised the bulk, or P1.004 trillion (89%) of total state collections, while the remaining 11% came from non-tax sources.

In particular, collections by the Bureau of Internal Revenue totaled P240 billion in April, bringing the taxman’s year-to-date collections to P742.4 billion, up 7.79% year-on-year.

The Bureau of Customs collected P65.7 billion in April, up 26.82% from a year earlier.

The higher Customs collection was attributed to the “improved valuation, intensified enforcement against illegal importations, and the improved compliance by traders to customs laws,” the BTr said.

The BOC’s January to April revenues amounted to P254.2 billion, outpacing last year’s performance by 26.50%.

Meanwhile, income generated by the Treasury totaled P25.7 billion, more than double last year’s level of P9 billion.

“The substantial increase was largely driven by higher dividend remittances as well as income from BSF (Bond Sinking Fund) investment and national government’s share from PAGCOR (Philippine Amusement and Gaming Corporation) income,” the Treasury said.

The BTr’s cumulative revenue of P74.4 billion for the four-month period likewise represented a double-digit growth of 53.85%, or P26.1 billion more than the P48.4 billion raised a year ago.

Collections from other offices, including privatization proceeds and fees and charges, for the month of April reached P15.4 billion, up 37.53% year-on-year, "mainly due to BCDA’s (Bases Conversion and Development Authority) higher remittance of disposition proceeds amounting to P6.4 billion compared to last year’s collection of P2.7 billion," the agency said.

Total BTr collections of P53.8 billion as of end-April were also 20.68%, or P9.2 billion, higher than the level recorded for the same period the previous year.

Expenditures

The government spent P343 billion last month, up 1.98% year-on-year.

The state’s year-to-date total expenditures rose to P1.444 trillion, a 6.64% or P89.9 billion increase from the previous year’s P1.354 trillion.

“Primary expenditures (net of interest payments) for the month of April accounted for 89% or P305.7 billion of total expenditures, reflecting a 2.18% decline over last year sans the P22.9 billion one-time financial assistance (FA) provided to LGUs (local government units) placed under enhanced community quarantine (NCR Plus) last year, and timing of subsidy releases to GOCCs (government-owned and controlled corporations),” the BTr said.

“Netting out the one-off releases, primary expenditure grew by 9.44% YoY. Nevertheless, cumulative primary expenditures of P1,257.6 billion for the January-April period still improved by P53.0 billion or 4.40% compared to 2021,” it added.

The BTr said that April interest payments amounting to P37.3 billion were 56.61%, or P13.5 billion, higher relative to the P23.8 billion paid a year ago.

Similarly, the total IP of P186.6 billion as of end-April grew by 24.69% over last year’s four-month total of P149.7 billion. —VBL, GMA News