Budget gap widens to P643 B in 7 months

The government recorded a high budget deficit of P643 billion from January to July even after the growth in revenue collections outpaced the expansion of state spending.

- LOUISE MAUREEN SIMEON

During the Senate committee on finance hearing yesterday, Finance Secretary Ralph Recto said the government incurred a higher budget shortfall of P642.8 billion in the seven-month period, 7.2 percent higher than the P599.5 billion in the same period last year.

Abudget deficit means that the government is spending beyond what it earned from revenue collections and at a slightly faster pace.

Data showed that total revenue collection as of endJuly rose by nearly 15 percent to P2.61 trillion as against the P2.27 trillion in the same period last year, as both tax and non-tax revenues increased.