The National Government posted a narrower budget deficit in June—P209.1 billion compared with P225.4 billion a year ago—as revenue collection led by the Bureau of Internal Revenue and the Bureau of Customs increased faster than government expenditures.
Meanwhile, the budget gap for the first half widened by P62.2 billion to P613.9 billion from
the year-earlier period but was P47.9 billion narrower than the expected P661.8 billion deficit on better revenue generation.
NG receipts for June rose 11 percent year-on-year to P296.5 billion, pushing total collection in the first half by nearly 16 percent to P2.15 trillion.
Taxes comprised the bulk of the first-semester total revenue accounting P1.84 trillion, which grew by 10 percent in the same period last year. Non-tax revenue added P314.2 billion, higher by 63 percent from the previous year and better than the 6-month target of P99.2 billion.
The BIR collected in June a total P172.5 billion, up 4.7 percent net of the P4.3 billion tax refund. For the first half, BIR collection was up 12 percent to P1.36 trillion but off the P1.4 trillion target for the period.
BOC collection reached P74.6 billion in June, growing marginally by 0.7 percent. Nevertheless, BOC still achieved a 5.1 percent year-on-year improvement in its January to June collections of P455.5 billion. First half BOC collection surpassed the P442.6 billion target.
The Bureau of the Treasury brought in P7.4 billion in June, down 31 percent due to lower dividend remittance and income from BTr-managed funds. Even so, BTr’s P163.9 billion income for the 6-month period was higher by 76 percent on account of higher dividend remittance, interest on advances from GOCCs, and NG share from PAGCOR income. Moreover, the Treasury exceeded the P129.2 billion revised midyear program by 27 percent and is only P23.1 billion short of the P187.0 billion revised 2024 target.
June collection from other offices, including privatization proceeds and fees and charges, surged to P39.8 billion, more than twice the level registered a year ago. The total collection for the first semester amounting to P150.3 billion surpassed the midyear program and last year’s collections by 75 percent and 51 percent, respectively.
Total disbursement for June reached P505.6 billion, higher by 2.6 percent due mainly to the implementation of capital outlay projects of the Department of Public Works and Highways, and the Department of National Defense under its Revised AFP Modernization Program, the preparatory activities of the Commission on Elections for the 2025 National and Local Elections, and the higher National Tax Allotment shares of LGUs. The growth in spending was, however, tempered by lower subsidy releases and net lending assistance to GOCCs.
The cumulative expenditures for the first semester stood at P2.76 trillion, an increase of nearly 15 percent year-on-year and higher than the midyear program of P2.74 trillion.
June primary expenditures, net of interest payment, amounted to P450.0 billion, marking a 2.3 percent increase from last year. The year-to-date primary expenditures also increased by 12 percent to P2.39 trillion.
Interest payments increased by 5.2 percent to P55.6 billion in June while the first half interest expense increased to P377.2 billion from P282.5 billion last year.
Excluding interest payments, the NG’s primary deficit for June narrowed by 11 percent to P153.4 billion while that for the first half narrowed by 12 percent to P236.7 billion.
