Gov’t fiscal gap narrower at P54.2B in August

The Philippine government yielded a narrower fiscal shortfall in August amid growth in state collections and contraction in expenditures during the period.

Data released by the Bureau of the Treasury on Wednesday showed the national government’s budget deficit stood at P54.2 billon last month, lower by 59.25% than the P133-billion fiscal gap seen in August 2023.

“The lower deficit was brought about by the 24.40% growth in government receipts alongside a minimal 0.68% contraction in government expenditures,” the Treasury said.

August’s fiscal balance brought the year-to-date budget shortfall to P697 billion, down 4.86% from the P732.5-billion deficit in the same period last year.

The January to August budget gap is equivalent to 46.95% of the expected P1.5-trillion full-year fiscal shortfall for 2024.

In August alone, total revenues of the government amounted to P386.3 billion, up 24.4% from P310.6 billion year-on-year.

Year-to-date state collections, meanwhile, stood at P2.993 trillion, up 15.91% from P2.582 trillion in January to August 2023.

Taxes comprised the lion’s share at 85.47% of the cumulative collections, rising by 10.83% from a year earlier.

Meanwhile, the remaining 14.53% or P434.9 billion were from non-tax sources, translating to a growth of 58.66%.

Government expenditures, on the other hand, saw a 0.68% contraction to P440.5 billion from P443.6 billion a year ago.

“This can be partly attributed to the lower total subsidy releases to government corporations, and the sizeable outstanding checks recorded in various departments, such as the Department of Public Works and Highways (DPWH), the Department of Social Welfare and Development (DSWD), and the Department of Health (DOH), during the period,” the Treasury said.

Nonetheless, year-to-date state expenditures reached P3.7 trillion, up 11.32% year-on-year and hitting 64.13% of the P5.8 trillion full-year target.—RF, GMA Integrated News