Government budget deficit narrows as spending slows down

The Marcos administration’s budget deficit shrank in March this year as revenue growth outpaced public spending, the Bureau of the Treasury reported.

The fiscal deficit of the national government for the third month of the year was P195.9 billion, down from P210.3 billion in March 2023.

Based on the Treasury report, the budget deficit has decreased due to an 11 percent surge in government revenues, which exceeded the mere three percent growth in expenditures.

In March, the total revenues increased to P287.9 billion compared to P258.7 billion last year.

Of the total, the Bureau of Internal Revenue collected P145.3 billion, while the Bureau of Customs also contributed significantly, raising P74.9 billion.

Additionally, the Treasury bureau generated P49.1 billion in revenues during the month.

On the other hand, the government expenditures amounted to P483.8 billion, higher compared to P468.9 billion a year ago.

“The growth of spending in March was weighed down by the lower subsidies to government corporations and transfers to local government units (LGUs), in particular, the special shares of LGUs in the proceeds of national taxes,” the Treasury said.

The government spent about P70.9 billion on interest payments during the month.

The budget deficit registered in March brought President Marcos’ first quarter total to P272.6 billion, marginally higher compared to P270.9 billion in the same period last year.

Total revenues during the quarter rose 14 percent to P933.7 billion from P818.7 billion last year.

Expenditures, on the other hand, grew 11 percent from P1.089 trillion to P1.206 trillion.

Excluding interest payments, the national government’s primary deficit dropped 38 percent to P79.7 billion from P128.9 billion. — Chino S. Leyco