The Treasury Office’s Treasury Operations report for June, published Wednesday, showed that the budget deficit by the end of June had increased from just 42.6 billion pesos a year ago, 25.4% less than the projected deficit of Rs 751.1 billion for the six countries. one-month period
Despite the year-over-year jump in disbursements, it has still been spent on public goods and services, with an overall decrease of 8.6% in January-June compared to the P2.2 trillion programme.
The number one net spend on interest payments, or so-called productive expenses, increased by 29.5% year per year to 1.83 trillion pesos in the first part of the year, but fell 8.5% under the program of 1.99 billion pesos, as the Treasury blamed the delay in implementing the time leg of the Social Improvement Program (PAS).
On the other hand, even as revenues fell at the end of June, the catch in six months was 0.12% higher than the reduced target of 1.452 trillion pesos.
As a reminder, the Cabinet Development Budget Coordination Committee (DBCC) last May reduced the profit target from 2020 to 6100 billion P2, 16.7% less than the genuine earnings of 3.14 billion pesos last year amid a COVID-19-induced recession.
The tax levies for the first half of the Office of Internal Revenue (BIR) fell 10.3% year-on-year to 956.4 billion pesos, 2.5% more than the reduced program of 933.5 billion pesos.
The collection of import and other taxes from customs (BOC) also decreased 16.5% per year to 253.1 billion pesos at the end of June, 0.5% under its revised target of 254.2 billion pesos.
Prior to this year, the last time a budget surplus was recorded for June 2008.
In June, tax and non-tax revenues increased by 50.1% from 33.9 billion pesos a year ago, with the BIR raising $282.7 billion, an increase of 79.1% of 157.8 billion pesos a year ago.
“Of the total, 93% or 325.4 billion pesos came from taxes that accelerated to 54.6%, while the remaining 7%, or 25.6 billion pesos, came from non-tax revenue,” Treasury said.
The Treasury attributed the resumption of the acquisition of JRR last June, which shortened 3 consecutive months of falls year after year, to “the recovery of the income source tax in 2019 the month and the resumption of economic activity due to the relaxation of secure quarantine restrictions.”
The IRB had shifted the filing and payment deadline from last year to June 15 in the care of taxpayers meeting the mandatory April 15 deadline to do so at the height of the blockade imposed since mid-March by the spread of COVID-19.
BOC’s June collections of 42.6 billion pesos fell 16.9% from 51.3 billion pesos a year ago “because the negative had an effect on the COVID-19 epidemic” in the foreign goods industry, the Treasury said.
Disbursements increased in June by 26.7% from 75.7 billion P2 last year, mainly due to “subsidies to the Philippine Health Insurance Corporation (PhilHealth) and the National Housing Authority (NHA),” the Treasury said.
Primary spending last June increased by 30.4% year per year to 321.7 billion pesos.
Excluding stimulus spending to fight COVID-19, the DBCC had already predicted that this year’s budget deficit would succeed at 1.6 trillion pesos or 8.4% of gross domestic product (GDP).
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