Gov’t fiscal deficit narrower by 3.71% to P123.9B in November —Treasury

The Philippine government’s fiscal balance saw a narrower year-on-year deficit in November as growth in state revenues outpaced the increase in spending during the period, data from the Bureau of the Treasury (BTr) showed.

The national government budget deficit stood at P123.9 billion, down 3.71% from the P128.7-billion fiscal shortfall posted in the same period last year.

The wider deficit resulted from the 16.67% year-on-year acceleration in government revenues, which outperformed the 10.24% increase in state spending.

The year-to-date budget shortfall, meanwhile, amounted to P1.236 trillion, 7.23% lower than the P1.33-trillion fiscal gap seen in the 11-month period a year ago and accounted for 75% of the P1.7 trillion full-year fiscal gap ceiling.

This resulted from the higher gain in revenues, which exceeded the increase in government spending during the January to November period.

“Year-to-date revenues climbed to P3.3 trillion, P503.1 billion or 18.1% above last year’s number and representing 99% of the P3.3 trillion goal for 2022,” Finance Secretary Benjamin Diokno told reporters in a Viber group message.

Tax revenues, for the 11-month period, amounted to P2.960 trillion, up 17.5% from P2.519 trillion year-on-year.

Meanwhile, non-tax revenues rose from P255 billion to P317.7 billion by 24.6%.

“Year-to-date, the national government spending reached P4.513 trillion, about 91% of the P5-trillion full-year program, and was 9.9% higher than the previous year's 11-month total of P4.106 trillion,” Diokno said.

In an emailed commentary, Rizal Commercial Banking Corp. chief economist Michael Ricafort said that the new administration’s economic team has also "acknowledged the need to narrow the budget deficit and curb the increase in the national government's outstanding debt.”

“Disciplined government spending also helped narrow the budget deficit, partly through no more lockdowns prospectively as a matter of policy priority, as well as recent signals to curb/rein in on unnecessary government expenditures/wastage/leakages to help narrow the budget deficit and temper the increment on the outstanding national government debt,” Ricafort said.—AOL, GMA Integrated News