Manila, Philippines – The Bureau of the Treasury (BTr) reported a significant decrease in the national government’s budget deficit for October 2023, citing a 65.2 percent reduction from the previous year. This improvement is attributed to an increase in revenue collections, outpacing the growth in government expenditures.
According to Philippines News Agency, the budget deficit for October 2023 stood at PHP34.4 billion, a substantial decline from PHP64.7 billion the previous year. This decline in deficit is a result of a 33.56 percent rise in revenue collections, which significantly outstripped the 8.32 percent increase in government spending. Revenue for the month reached PHP385.8 billion, up from last year’s PHP288.9 billion.
From January to October, total revenue collections amounted to PHP3.2 trillion, a 9.4 percent increase compared to PHP2.9 trillion in the same period last year. Tax-generated revenue constituted PHP2.896 trillion of the total, while non-tax sources contributed PHP327.6 billion.
Expenditures in October rose by 8.32 percent, reaching PHP420.2 billion. This increase in spending was primarily due to higher capital expenditures for road infrastructure projects by the Department of Public Works and Highways, the modernization program of the Department of National Defense, and foreign-assisted rail transport projects by the Department of Transportation. Additional factors contributing to the rise in expenditures included larger interest payments and maintenance and other operating expenses, notably the Commission on Elections’ expenditures related to the Barangay and Sangguniang Kabataan Elections. However, the growth in disbursements was moderated by lower National Tax Allotment shares to local government units and the timing of subsidy releases to government corporations.
For the January to October period of 2023, total government spending amounted to PHP4.24 trillion, a 4.52 percent increase from the previous year. This figure represents 81.12 percent of the PHP5.228 trillion allocated in the 2023 program.