The budget deficit of the national government narrowed in July to P28.8 billion from P47.8 billion in the same month last year, helped by a robust 11 percent increase in revenue that outpaced the 5.8 percent increase in expenditures
The total budget gap between January and July, however, was still wider by 7.2 percent at P642.8 billion.
The Bureau of the Treasury reported that revenue collection in July increased to P457.4 billion, with tax collection accounting for P402.8 billion, up 15 percent year-over-year. Non-tax revenue in July declined 13 percent to P54.6 billion.
In the first seven months of 2024, cumulative revenue rose 15 percent to P2.6 trillion, with tax collection contributing P2.2 trillion, up 11 percent. Non-tax revenue contributed P368.8 billion, up 44 percent despite the decline in July.
The Bureau of Internal Revenue reported a 17 percent increase in July collections to P319.8 billion, net of P175.0 million in tax refunds. For the January-July period, the total collection of the BIR increased 13 percent to P1.7 trillion, fueled by higher collection of value-added, income, and other domestic taxes. The VAT collection increase was partly due to base effects from a shift in VAT payment filing mandated by the Tax Reform for Acceleration and Inclusion Law.
The Bureau of Customs increased its collection by 10 percent to P80.4 billion in July, net of P645.0 million in tax refunds. Cumulative customs collection year-to-date reached P535.9 billion, up 5.80 percent on higher VAT, import duties, and excise tax, supported by peso depreciation, increased import volumes, and higher international crude oil prices.
The Bureau of the Treasury saw a significant drop in July income, totaling P19.9 billion compared to P50.8 billion in the previous year, due mainly to last year’s one-off remittance of P31.9 billion from the BSP and reduced income from BTr-managed funds and government deposits. Despite this, BTr’s cumulative 2024 income reached P183.8 billion, a 28 percent increase on higher dividend remittances and interest on advances from GOCCs.
Collection from other offices, including privatization proceeds, fees, and grants, amounted to P34.6 billion in July, nearly triple the P12.0 billion recorded in the same period last year. The cumulative collection of P185.0 billion for the year represented a 66 percent increase, or P73.5 billion, over the previous year.
Total July expenditures was up 5.8 percent to P486.2 billion due partly to a higher national tax allotment share for local government units. Year-to-date disbursement was up 13 percent to reach P3.2 trillion.
Primary expenditures (excluding interest payments) in July were P406.8 billion, up 2.7 percent. Total for the seven-month period amounted to P2.8 trillion, surpassing the P2.5 trillion recorded in the same period last year.
Interest payments was up 25 percent to P79.4 billion in July, pushing year-to-date payments 32 percent higher toP456.7 billion,.
The primary surplus for July increased to P50.6 billion, a significant improvement from last year’s P15.7 billion. This reduced the year-to-date primary deficit to P186.1 billion, a 27 percent decrease from the previous year’s primary deficit of P253.5 billion.
With a 6.0 percent real GDP growth in the first half of 2024, the deficit ratio for the semester widened slightly to 4.87 percent from 4.80 percent a year ago. The revenue effort improved to 17.06 percent from 16.17 percent in 2023, while the tax effort increased to 15 percent. The expenditure effort was also higher by 22 percent from 21 percent in the year-earlier period.
