PH budget swings back to deficit in June
MANILA, Philippines - The Department of Finance says the government has boosted spending in June, despite slower growth in revenue collections, resulting to a six-fold increase in budget deficit.
Finance Secretary Cesar Purisima said government spending surged 44 percent to P201.1 billion in June. This brought year-to-date expenditures to P987.71 billion.
"The government’s efforts to boost revenue collections has allowed us to ramp up spending by 10.9% in the first half of 2014 and yet stay within our deficit target. As a result of prudent liability management more of these disbursements have been allocated to productive investments instead of our debt obligations," Purisima said.
However, the end-June government spending is still 16 percent lower than the P1.18 trillion target for the period.
The government has been increasing expenditures for rebuilding of typhoon Yolanda-hit areas and for the construction of big infrastructure projects.
The DOF said revenue collection only went up 6 percent to P138.6-billion in June. This brought total revenue collections in the first half to P933.73 billion, 11 percent up from year-ago figures.
However, the revenues in the first half were still 5 percent below the P986.3 billion target for the period.
Meanwhile, the budget deficit increased six-fold to P62.5 billion in June, from the P8.5 billion during the same month last year.
In the first half, the budget deficit stood at P54 billion, 5 percent wider than comparable levels in 2013.