29 August 2014 Manila, Philippines – The National Government (NG) recorded a P1.8 billion fiscal deficit in July as revenue generating agencies ramped up collection efforts. The July deficit is down 97% from the same period last year, resulting to a lower cumulative budget shortfall of P55.7 billion for the first seven months of 2014 compared to P104.5 billion in 2013.
Total revenues for the month amounted to P166.7 billion, registering a growth of15% compared to the same month last year. This brings year-to-date collections to P1.10 trillion, reflecting a 12% increment over comparable figures in 2013.
The Bureau of Internal Revenue(BIR) collectedP119.9 billion in July, posting a double-digit year-on-year increase of 20%, registering the highest growth in monthly collections attained for the year. In total, BIR collections has grown 10% year-on-year to P763.2 billion for the first seven months of 2014.
The Bureau of Customs(BOC) managed a 10% growth for the month of July with actual collections of P30.5 billion. BOC has raised P203.9 billion for the year registering an 18% year-on-year improvement in performance.
Bureau of the Treasury (BTr) income amounted to P7.5 billion in July, down 6% from the previous year due to lower interest earned from NG investments and deposits. Nevertheless, Total BTr income of P70.4 billion from January to July still increased by 23% year-on-year, mostly due to the increase in dividend collections and interest income.
Collections from other offices contributed P8.8 billion, which is 1% lower than collections last year. However, year-to-date revenue of P63.0 billion still indicates a 5% improvement in collections over the same period last year.
NG disbursements amounted to P168.5 billion in July, 15% or P29.4 billion lower than comparable figures last year. Year-to-date expenditures stands at P1.16 trillion, 6% higher than similar spending for 2013.
Interest payments (IP) for July declined by 10% year-on-year to P48.2 billion from P53.5 billion in 2013 as both domestic and foreign IP payments has gone down. Similarly, total IP of P208 billion for January to July is 1% behind the pace set last year.
Primary Surplus/ (Deficit)
Netting out interest payments from expenditures, NG recorded a P46.5 billion primary surplus for the month of July resulting to a cumulative primary surplus of P152.2 billion, P46.1 billion higher than its level over the same period in 2013.