The national government’s (NG) budget deficit narrowed to PHP122.2 billion in May due to slower spending. In a statement on Tuesday, the Bureau of the Treasury (BTr) said the budget deficit last month was lower by 16.7 percent than the PHP146.8 billion shortfall last year. “The lower deficit for the period was brought about by the 9.35 percent increase in NG receipts overtaking the 0.88 percent marginal growth in NG expenditures,” the BTr said. Year-to-date, the budget gap amounted to PHP326.3 billion, down by 28.8 percent compared to PHP458.7 billion in 2022. Revenue collection during the month amounted to PHP333.4 billion, up by 9.35 percent from last year’s PHP304.9 billion. Total revenues for the first five months of the year stood at PHP1.6 trillion, higher by 10.8 percent from PHP1.4 trillion last year mainly due to improvements in both tax and non-tax collections. Government spending, meanwhile, marginally increased by 0.88 percent to PHP455.7 billion in May this year from PHP451.7 billion last year. The BTr said “the lower National Tax Allotment (NTA) shares of local government units and net lending assistance to government corporations weighed down the growth of disbursements.” Year-to-date, disbursement amounted to PHP1.9 trillion, up by 1.22 percent from PHP1.8 trillion last year. Finance Secretary Benjamin Diokno earlier expressed concern about the government agencies’ slow spending. “Agencies have slow spending and that will impact the performance. We’re collecting more revenues than forecasted, but they [agencies] are underspending,” Diokno said. The Department of Budget and Management also earlier urged government agencies to further ramp up their budget disbursement and spending. ‘We all know that our national budget is the lifeblood of all government programs and projects. The faster we disburse and utilize our funds, the faster we can procure and implement our projects,’ DBM Secretary Amenah Pangandaman said.
Source: Philippines News Agency