PHL budget deficit in November 2023 amounted to P93.3 billion – Treasury

The National Government (NG) ran a P93.3 billion budget deficit in November 2023, declining by 24.75% (P30.7 billion) from a year ago due to the 2.82% growth in revenue collection alongside a 4.69% contraction in public spending.

This narrowed the YTD budget deficit to P1.111 trillion, 10.09% or P124.6 billion lower compared to the Jan-Nov 2022 level and is at 74.10% of the P1.499 trillion FY 2023 program¹.

Revenue Performance

Government receipts for November increased to P340.4 billion or 2.82% higher from last year’s P331.1 billion, driven by the sharp increase in non-tax collection.

As a result, the cumulative collection for the 11-month period rose by 8.75% (P286.7 billion) to P3.564 trillion YoY while representing 95.58% of the P3.729 trillion full-year target. Of the YTD collection, 89.28% (P3.182 trillion) was generated through taxes with the remaining 10.72% coming from non-tax sources.

The Bureau of Internal Revenue’s (BIR) collection for November decreased to P210.2 billion (net of P1.2 billion tax refund) from P237.1 billion raised in the same month last year due to the shift in VAT remittance deadline.

Meanwhile, the agency’s YTD collection reached P2.343 trillion, outperforming the previous year’s outturn by 8.64% or P186.3 billion and reaching 88.77% of the P2.639 trillion FY 2023 program.

Similarly, collections by the Bureau of Customs (BOC) slowed to P73.7 billion in

November 2023, down by 2.69% (P2.0 billion) YoY.

However, compared to the JanNov 2022 revenue performance, the agency’s YTD collection for 2023 of P812.0 billion was higher by 2.88% or P22.8 billion and already accounted for 92.89% of the P874.2 billion goal set for the year.

Bureau of the Treasury (BTr) income surged to P41.5 billion in November 2023 from a mere P5.3 billion in 2022 primarily driven by higher dividend remittances and NG share from PAGCOR income. This pushed BTr cumulative revenue to P216.3 billion, surpassing the level registered in the equivalent period last year by 45.96% (P68.1 billion).

Moreover, BTr’s YTD performance has more than tripled the P58.3 billion 2023 full-year program fueled by higher dividend remittances, interest income from BTr’s managed funds and NG deposits, NG share from PAGCOR and MIAA profit, and government service income.

November collections from other offices (other non-tax revenues including privatization proceeds, and fees and charges) amounting to P12.9 billion posted an

8.88% or P1.0 billion improvement from the previous year’s tally of P11.8 billion. This brought the Jan-Nov collection to P165.6 billion, up by 1.80% or P2.9 billion from last year’s comparable figure.

Expenditures

Expenditures for November slowed by 4.69% or P21.3 billion on a YoY basis partly due to the lower National Tax Allotment shares of LGUs, lower direct payments made by development partners for the foreign-assisted rail transport projects of the DOTr, as well as the different timing or schedule of big-ticket disbursements in the DPWH and the DSWD. On the other hand, the total disbursements as of the end of November grew by 3.59% or P162.1 billion to P4.675 trillion and is at 89.42% of the FY 2023 program.

Primary expenditures (net of interest payments) of P385.1 billion in November was 10.21% (P43.8 billion) lower than what it was in 2022. Meanwhile, the cumulative primary spending of P4.108 trillion as of the end of November notched a 1.32% or P53.7 billion improvement from a year ago.

Total IP for November hit P48.5 billion, 86.06% (P22.5 billion) higher YoY. The resulting cumulative figure of P567.7 billion also increased by 23.60% (P108.4 billion) from last year’s comparable level. As a percentage of total revenue and expenditure, IP from January to November increased to 15.93% and 12.14% from 14.01% and 10.18% a year ago, respectively.

Primary Surplus/ (Deficit)

Net of interest payments, NG’s primary deficit for November stood at P44.7 billion, posting a YoY decrease of 54.31% or P53.1 billion. The YTD primary deficit consequently declined to P543.5 billion, 30.01% (P233.0 billion) lower than the P776.5 billion primary deficit incurred in the previous year.

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¹ Based on the approved Quarterly Fiscal Program by the DBCC during their 184^th meeting held on April 24, 2023.