National Government’s Budget Deficit Widened As Government Spending Exceeded A Moderate Increase In Revenue Generation
BUDGET – The Bureau of Treasury (BTr) recently reported on Thursday that the National Government’s budget widened to ₱39.1 billion.
This November’s fiscal gap was 354% bigger than last year’s deficit, which amounted to ₱ 8.6 billion. The government’s budget balance swung to a
₱477.2 billion deficit in 11 months, which is higher than the ₱243.5 billion shortage that was registered in the comparable period in 2017; and is equivalent to the 91% of the P523.7 billion full-year cap for 2018
A report in PhilStar explains that a deficit would mean that the government spend more than what they earned. Surplus, on the other hand, means otherwise
BTr said that last month, revenues grew to 7% year-on-year from ₱243.5 billion to ₱259.7 billion. Collections hit ₱2.618 trillion from January to November, up 16% from last year.
Expenditures, on the other hand, rose up to 19% from ₱252.1 billion a year ago to ₱298.8 billion in November. The disbursement was 24% larger from ₱2.493 trillion to ₱3.095 trillion in the same period
As per the report, the government has been pushing for a wider budget gap in order to accommodate increased infrastructure spending, especially big-ticket projects in its “Build, Build, Build” program.
Right now, the Philippine government’s fiscal shortage program was set at 3% of gross domestic product (GDP) this year; 3.2%for next year; and 3% in 2020 until 2022.
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