June 2024 budget deficit narrows to P209.1 billion

By Francis Allan L. Angelo

The National Government’s (NG) budget deficit for June 2024 decreased to PHP 209.1 billion from PHP 225.4 billion a year ago, driven by faster revenue growth compared to government expenditures.

However, the budget gap for the first half of the year widened to PHP 613.9 billion, an 11.27% increase from the same period last year, but 7.24% below the midyear target due to better-than-expected revenues.

For June, NG receipts amounted to PHP 296.5 billion, surpassing last year’s PHP 267.3 billion by 10.93%.

Total collections for the first half of 2024 reached PHP 2.15 trillion, up by 15.56% over the previous year.

Taxes comprised 85.38% (PHP 1.84 trillion) of the first-semester total revenue, growing by 10.05% from PHP 1.67 trillion in the previous year.

Non-tax collections, which accounted for 14.62% (PHP 314.2 billion), saw a 63.30% increase from last year.

The Bureau of Internal Revenue (BIR) collected PHP 172.5 billion in June, a 4.71% year-over-year increase.

For the first half of 2024, the BIR’s collections reached PHP 1.36 trillion, an 11.72% increase but slightly below the midyear target by 2.92%.

The Bureau of Customs (BOC) collected PHP 74.6 billion in June, a marginal 0.67% increase from last year.

For the first six months, BOC’s collections totaled PHP 455.5 billion, surpassing the midyear program by 2.91%.

The Bureau of the Treasury (BTr) generated PHP 7.4 billion in June, a 30.99% decline from the previous year. However, BTr’s income for the first half of 2024 was PHP 163.9 billion, a 76.26% increase from last year.

Expenditures

Total disbursements for June were PHP 505.6 billion, a 2.62% increase from the previous year.

The rise was mainly due to capital outlay projects by the Department of Public Works and Highways and the Department of National Defense, preparatory activities for the 2025 elections by the Commission on Elections, and higher National Tax Allotment shares for local government units.

Cumulative expenditures for the first half of the year reached PHP 2.76 trillion, a 14.58% increase from last year and slightly above the midyear program by 0.90%.

Primary Surplus/Deficit

Excluding interest payments, the NG’s primary deficit for June was PHP 153.4 billion, an 11.06% reduction from the previous year.

For the first half of 2024, the primary deficit totaled PHP 236.7 billion, a 12.10% decrease from last year and 19.29% below the midyear target.