Philippines books P149.9 billion budget deficit in June

ABS-CBN News

Posted at Jul 27 2021 02:22 PM

Philippines books P149.9 billion budget deficit in June 1

MANILA - The Philippines booked a P149.9 billion budget deficit in June as government spending again outstripped income, the Bureau of Treasury said on Tuesday.

The June shortfall pushed the total deficit for the first half to P716.1 billion, which was 27.8 percent higher than in the same period last year. Treasury however also noted that this was still 29.7 percent lower than the planned deficit of P1.018 trillion for the period. 

“Total collections for June slid to P245.6 billion, 30 percent or P105.4 billion less than last year’s tally of P351 billion,” Treasury said. 

However, the P1.49 trillion collected in the first half was still higher by 2.6 percent or P37 billion compared to the same period last year on account of higher tax collections. This was also higher than the revised forecast of P1.422 trillion by 4.8 percent, the agency said.

National government expenditures meanwhile hit P395.4 billion in June, reflecting a 13.2 percent growth from the same month last year. This mostly went to the infrastructure program, the modernization of the military, emergency repatriation of overseas Filipinos, the Smart Campuses Program of the Commission on Higher Education, and expenditures for the preparatory activities of the COMELEC for the 2022 polls.

Total expenditures as of end-June 2021 amounting to P2.206 trillion also outpaced the previous year’s actual disbursement by 9.6 percent, but missed the P2.44 trillion revised program by 9.6 percent, Treasury said.

The Philippines has been spending and borrowing heavily for its COVID-19 response as well as its ambitious infrastructure program. 

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