MANILA — The Philippines' national government budget deficit decreased to PHP195.9 billion in March from PHP210.3 billion in the same month last year.
According to Philippines News Agency, The BTr noted that the reduction in the budget gap was supported by an 11.32 percent increase in revenue compared to last year, contrasted with a smaller 3.18-percent rise in government spending. Revenue collections reached PHP287.9 billion, up from PHP258.7 billion in March 2023. This increase occurred despite a slight drop in tax revenues, mainly due to reduced collections by the Bureau of Customs, attributed to fewer working days in the month because of public holidays.
Government expenditures also grew, totaling PHP483.8 billion, up from PHP468.9 billion the previous year. "The increase in disbursements across agencies was moderated by decreased subsidies to government corporations and reduced transfers to local government units, particularly special shares of LGUs in the proceeds of national taxes," the BTr reported. The bureau also mentioned that the transfer of PHP15.0 billion to the Coconut Farmers and Industry Trust Fund, expected in April this year, contributed to the fiscal dynamics; last year, this transfer occurred in March.
For the first quarter of the year, the cumulative budget deficit was recorded at PHP272.6 billion. Total revenue collections for the period stood at PHP933.7 billion, while expenditures reached PHP1.2 trillion, reflecting the ongoing challenge of managing government spending relative to income.