THE national government’s budget deficit significantly widened as of end-April versus the previous year’s level as collections fell while expenditures posted a double-digit jump, amid the measures implemented to address the coronavirus pandemic.
Data released by the Bureau of the Treasury (BTr) showed the cumulative budget deficit as of April amounted to P347.9 billion, much higher compared to last year’s shortfall of P3.4 billion.
In April alone, the government posted a fiscal deficit of P273.9 billion, reversing the P86.9 billion budget surplus recorded a year ago as expenditures accelerated by more than a hundred percent, while revenues significantly fell from a year ago.
The government usually posts a budget surplus in April since it coincides with the deadline for the filing and payment of income tax returns, as mandated under the law.
However, the Bureau of Internal Revenue (BIR) had to move the deadline this year in consideration of taxpayers whose movements were limited by the implementation of the enhanced community quarantine (ECQ).
Carlos Dominguez, Department of Finance secretary, earlier said the collection of taxes that were supposed to come in in April is not considered as revenue lost, but the collection was merely postponed, as those taxes are for income already earned last year.
According to the BTr, total revenues for the month amounted to P187.8 billion, declining by 39.17 percent from last year’s total of P308.7 billion.
The resulting year-to-date revenue of P963 billion also dropped by 3.36 percent from the previous year’s level of P996.4 billion.
The BIR posted a steep 61.56 percent decrease in its collections for the month, settling at P90.5 billion versus the P235.5 billion recorded a year ago.
“The slower outturn was attributed to the Luzon-wide ECQ, which was also implemented in other provinces, and the extension of deadlines for the filing and payment of income and other taxes due for the month amid the pandemic crisis,” the BTr said.
Consequently, BIR’s aggregate collection from January to April declined as well to P559.3 billion, 20.52 percent lower than the 2019 comparable revenue performance of P703.7 billion.
Similarly, collections by the Bureau of Customs (BOC) slipped by 33.38 percent to P34.4 billion in April from the P51.7 billion raised in the same month last year.
Total BOC collection as of end-April amounting to P179.7 billion also indicates a 7.13 percent contraction from the P193.5 billion posted a year ago.
Meanwhile, the BTr raised P52.8 billion for the month, far exceeding the P10.5 billion collected a year ago.
“The bureau’s strong revenue performance is credited to the remittance of dividends and other income from government-owned and -controlled corporations in compliance with Republic Act 11469,” the BTr said.
As a result, BTr’s cumulative revenue rose to P164 billion, almost four times higher than comparable figures for January to April 2019 and already 99.33 percent above the full-year target of P82.3 billion.
Lastly, collections from other sources, specifically other non-tax revenues including privatization proceeds and fees and charges, in April contributed P10.1 billion, up 6.61 percent over similar collections in 2019. Year-to-date collection of P53.2 billion also grew by 5.78 percent year-on-year.
On the other hand, expenditures in April soared to P461.7 billion, notching a faster growth of 108.14 percent, more than twice the level recorded for the same month last year of P221.8 billion.
“Spending was boosted by the releases of funds for the implementation of the first tranche of the social amelioration program and the small business wage subsidy program, Bayanihan grant to provinces, cities, and municipalities, and other recovery and rehabilitation measures of the national government under the Bayanihan to Heal as One Act,” the BTr said.
This resulted in higher cumulative disbursements, growing by 31.12 percent from the P999.8 billion posted a year ago, to reach P1.31 trillion as of end-April 2020.
