Spending ban narrows May budget deficit

While the P67.3-billion surplus seen in April shifted to a shortfall last month, the Philippine government's budget deficit in May was narrower at P145.2 billion, compared to P174.9 billion a year earlier, revenues surged while spending growth slowed during the midterm election season, when new public programs and projects are banned.

- DERCO ROSAL

According to the Bureau of the Treasury (BTr), this narrower budget shortfall was mainly because revenue collections were robust during the period, with a 13.4-percent growth.

This came alongside a slowdown in spending growth to 3.8 percent during the month when national and local elections were held.

Given this, the government said it "remains on track to meet its deficit target for the year through prudent fiscal management and efficient use of resources," in line with its medium-term fiscal program.

Total revenues hit P433.1 billion in May, up 13.4 percent from a year ago, driven by strong gains in both tax and non-tax collection.