April shortfall expected – Recto

Finance Secretary Ralph Recto. Photo from Department of Finance

THE government expects to have posted another budget deficit last month amid efforts to accelerate economic growth, Finance Secretary Ralph Recto said.

“We want the government to spend also. We want to grow the economy,” he told reporters on Monday.

While the government remains on track to meet the P4.3-trillion revenue goal for this year, the budget balance will still end up in deficit, Recto added.

He reiterated earlier statements that recent revisions to the government’s macroeconomic, growth, and fiscal assumptions would require increased borrowings.

“[T]he idea is to grow the economy at a faster rate than your debt,” Recto explained.

“So if we grow by 6.0 percent, then that’s faster than your debt is growing, so we can afford to pay, right?”

The government’s budget deficit expanded in March to P195.9 billion, up from P164.7 billion in February as spending again outpaced revenues.

Revenues were recorded at P287.9 billion while expenditures totaled P483.8 billion for the month.

Collections were roughly at P1.4 trillion as of end-April, Recto said.

“If that’s for four months, if everything continues this way, P1.4 trillion times three is P4.2 [trillion], so it’s somewhat hitting the target,” he added.

“But it’s only the first four months. Let’s see if it’s sustainable for eight more months.”

He said the Bureau of Internal Revenue (BIR) had already collected P912.9 billion, 16.3 percent higher compared to the same period last year, while the Bureau of Customs (BoC) also grew its collection by 6.50 percent to P299.674 billion.

The BIR is tasked to collect P3.05 trillion this year and BoC around P1 trillion.

Nontax revenues, meanwhile, were said to have already reached P206.4 billion, up 85 percent year-on-year.

“We expect both our tax and nontax revenues to dramatically increase over the coming months as we intensify our revenue mobilization efforts,” Recto claimed.

NIÑA MYKA PAULINE ARCEO