Fiscal gap shrinks as spending slows

The Philippines’ budget deficit narrowed in September, the Bureau of the Treasury (BTr) said on Thursday, as corruption probes into flood control projects slowed government spending.

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The fiscal gap shrank 9.22% year on year to P248.1 billion, while month on month, it nearly tripled from August’s P84.8-billion shortfall. Total government spending dropped 7.53% to P529.8 billion from a year earlier, reflecting a slowdown in project implementation.

Primary expenditures — total spending minus interest payments — fell 10.22% to P448.1 billion, while interest payments rose 10.63% to P81.7 billion.

Revenue collection also weakened, slipping 5.99% to P281.7 billion as nontax revenues plunged by almost two-thirds. Treasury profits fell 21.73% to P7.8 billion, while income from other offices dropped 77.82% to P8 billion.

Tax revenues provided some relief, increasing 4.91% year on year to P265.9 billion. The Bureau of Internal Revenue (BIR) collected P183 billion, up 4.74%, while Bureau of Customs (BoC) receipts rose 5.25% to P80.3 billion.