November 2022 fiscal deficit declines to P123.9 billion

The National Government’s (NG) P123.9 billion budget deficit in November was down by 3.71% or almost P5.0 billion from a year ago as government revenue growth of 16.57% outperformed the 10.24% increase in expenditure.

Consequently, the cumulative budget deficit as of-end November slowed to P1.2 trillion, 7.23% (P96.3 billion) lower compared to the budget gap posted in the equivalent period last year and was at 75% of the P1.7 trillion full-year program¹.

Revenue Performance

Revenue collection for November rose to P331.1 billion, 16.57% or P47.0 billion higher year-over-year (YoY). This brought the year-to-date (YTD) collection to P3.3 trillion,

18.13% or P503.1 billion above last year’s figure and representing 99% of the P3.3 trillion goal for the year.

Taxes contributed P3.0 trillion or 90% to the total and registered 17.48% YoY growth for the period. Meanwhile, the remaining balance of P317.7 billion (10%) from non-tax sources also improved by 24.59% from the previous year’s level.

The Bureau of Internal Revenue (BIR) raised P237.1 billion (net of P471.0 million tax refund) for November, growing by 12.53% or P26.4 billion YoY. BIR’s cumulative collection from January to November reached P2.2 trillion, climbing 12.56% (P240.6 billion) higher over the same period a year ago and is 90% of the P2.4 trillion FY 2022 program.

Collections by the Bureau of Customs (BOC) stood at P75.7 billion², reflecting a

30.74% (P17.8 billion) increase from the previous year’s actual collection. The BOC’s resulting YTD uptake similarly rose to P789.2 billion, 35.31% or P206.0 billion higher than for the same period a year ago and surpassing the FY 2022 P721.5 billion target by 9.39% (P67.7 billion).

Bureau of the Treasury (BTr) income for November declined to P5.3 billion, 13.25% (P806.0 million) lower YoY mainly due to the high base for dividend collections. Nevertheless, BTr’s YTD income of P148.2 billion surpassed the revenue collected in the equivalent period last year by 22.90% or P27.6 billion and has more than doubled the P61.2 billion original 2022 full-year program.

Revenues from other offices (other non-tax including privatization proceeds and fees and charges) for the month climbed to P12.9 billion, improving by 61.04% (P4.9 billion) over the previous year’s outcome. Similarly, the total aggregate collection of P169.5 billion for the January-November period was 26.11% or P35.1 billion higher against the P134.4 billion registered in the same period last year.

Expenditures

NG spending for November reached P455.0 billion, 10.24% or P42.3 billion faster compared to last year, mainly attributed to the larger National Tax Allotment (NTA) of Local Government Units (LGUs), disbursements from capital outlay projects of the Department of Public Works and Highways (DPWH), payouts for the social protection programs of the Department of Social Welfare and Development (DSWD), and releases for the year-end bonus and cash gift of government employees. YTD disbursement of P4.5 trillion reached 91% of the P5.0 trillion full-year program and likewise outperformed the previous year’s 11-month total of P4.1 trillion by 9.91% (P406.8 billion).

Meanwhile, primary spending (net of interest payment) posted a 12.43% YoY growth for November, reaching P428.9 billion. This brought the cumulative primary expenditure to P4.1 trillion, up by 9.44% or P349.6 billion YoY.

November interest payments (IP) totaled P26.1 billion, decreasing by 16.43% or P5.1 billion from last year’s level. The resulting IP as of end-November increased to P459.3

billion, 14.21% (P57.1 billion) higher YoY. Cumulatively, IP accounted for 10.18% of the total expenditures for the Jan-Nov period, increasing from 9.79% a year ago.  On the other hand, IP as a percentage of total revenue declined to 14.01% from the previous year’s 14.49%.

Primary Surplus/ (Deficit)

Deducting interest payments from expenditures, NG’s primary deficit for the month marginally increased to P97.8 billion from 2021’s P97.5 billion. Nevertheless, the total primary deficit from January to November of P776.5 billion showed a 16.50% or P153.5 billion decline from last year’s primary balance of P930.0 billion.

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¹ Based on the approved Quarterly Fiscal Program by the DBCC during their 181^st meeting held on May 24, 2022.

² Net of P1.2 billion tax refund; November gross BOC collection was P77.0 billion inclusive of tax refund.