THE 2011 BUDGET DEFICIT will likely fall well under target as the government yesterday reported an 11-month shortfall of P96.254 billion, less than a third of the P300 billion programmed for the year.
A significant increase in state spending led to a November deficit of P22.003 billion, a reversal of the P482-million surplus a year earlier. Year-on-year revenue gains were also recorded, prompting the Finance chief to claim success on the fiscal front.The government, which is not expected to hit its forecast deficit for 2011 of P260.6 billion given the underspending that marked most of the year, said it was looking forward to the “timely implementation” of projects next year.“Our November fiscal position has shown our ability to sustain increased expenditures with improved revenue collections,” Finance Secretary Cesar V. Purisima said in a statement.“This only shows that we can keep up with our fiscal consolidation processes despite spending more to shield our economy from the present global uncertainties,” he added.Revenue collections hit P128.745 billion in November, up 15.43% from a year earlier. The Bureau of Internal Revenue (BIR) accounted for P92.751 billion, followed by the Bureau of Customs (BoC) with P25.51 billion, the Bureau of the Treasury (BTr) with P3.828 billion and other state offices with P6.656 billion.For January-November, revenues totalled P1.249 trillion, up 13.13% compared with the same period last year. The BIR, which has to collect P940 billion by yearend, accounted for the bulk at P849.515 billion, followed by the BoC -- which has to rake in P320 billion this year -- at P242.96 billion, the BTr at P75.021 billion and other offices at P82.276 billion.The Finance department said Customs collections had expanded as imports increased in anticipation of the Christmas season.The government, which promised to spend P72 billion in the last three months of the year, saw disbursements rise to P150.748 billion in November, up 35.7% from a year earlier. The amount compares to the P122.838 billion and P125.196 billion in disbursements for September and October, respectively.The BTr, in a statement, said “total disbursements amounted to P1.346 trillion, 2% lower than the comparable disbursements in 2010.” Excluding interest payments, total disbursements dropped by 0.47% to P1.094 trillion.The government initially programmed P1.711 trillion in expenditures for this year but slashed this to P1.618 trillion after sluggish disbursements early in the year. The original revenue goal of P1.411 trillion has also been cut to P1.357 trillion due to slower-than-expected economic growth, at 3.6% as of September, that has been blamed on government underspending.“The early enactment of the P1.816-trillion 2012 General Appropriations Act bodes well for the timely implementation of the Aquino administration’s priority programs and projects next year which should support growth and create employment,” the Finance department said.The budget for next year includes a P140-billion allotment for infrastructure development on top of the projects funded by the 2011 budget that will continue to be implemented next year, it added.Commenting on the deficit, HSBC economist Trinh Nguyen in Hong Kong said: “Basically, this is expected. However, for the year it will be significantly below target.”
THE 2011 BUDGET DEFICIT will likely fall well under target as the government yesterday reported an 11-month shortfall of P96.254 billion, less than a third of the P300 billion programmed for the year.
A significant increase in state spending led to a November deficit of P22.003 billion, a reversal of the P482-million surplus a year earlier. Year-on-year revenue gains were also recorded, prompting the Finance chief to claim success on the fiscal front.
The government, which is not expected to hit its forecast deficit for 2011 of P260.6 billion given the underspending that marked most of the year, said it was looking forward to the “timely implementation” of projects next year.
“Our November fiscal position has shown our ability to sustain increased expenditures with improved revenue collections,” Finance Secretary Cesar V. Purisima said in a statement.
“This only shows that we can keep up with our fiscal consolidation processes despite spending more to shield our economy from the present global uncertainties,” he added.
Revenue collections hit P128.745 billion in November, up 15.43% from a year earlier. The Bureau of Internal Revenue (BIR) accounted for P92.751 billion, followed by the Bureau of Customs (BoC) with P25.51 billion, the Bureau of the Treasury (BTr) with P3.828 billion and other state offices with P6.656 billion.
For January-November, revenues totalled P1.249 trillion, up 13.13% compared with the same period last year. The BIR, which has to collect P940 billion by yearend, accounted for the bulk at P849.515 billion, followed by the BoC -- which has to rake in P320 billion this year -- at P242.96 billion, the BTr at P75.021 billion and other offices at P82.276 billion.
The Finance department said Customs collections had expanded as imports increased in anticipation of the Christmas season.
The government, which promised to spend P72 billion in the last three months of the year, saw disbursements rise to P150.748 billion in November, up 35.7% from a year earlier. The amount compares to the P122.838 billion and P125.196 billion in disbursements for September and October, respectively.
The BTr, in a statement, said “total disbursements amounted to P1.346 trillion, 2% lower than the comparable disbursements in 2010.” Excluding interest payments, total disbursements dropped by 0.47% to P1.094 trillion.
The government initially programmed P1.711 trillion in expenditures for this year but slashed this to P1.618 trillion after sluggish disbursements early in the year. The original revenue goal of P1.411 trillion has also been cut to P1.357 trillion due to slower-than-expected economic growth, at 3.6% as of September, that has been blamed on government underspending.
“The early enactment of the P1.816-trillion 2012 General Appropriations Act bodes well for the timely implementation of the Aquino administration’s priority programs and projects next year which should support growth and create employment,” the Finance department said.
The budget for next year includes a P140-billion allotment for infrastructure development on top of the projects funded by the 2011 budget that will continue to be implemented next year, it added.
Commenting on the deficit, HSBC economist Trinh Nguyen in Hong Kong said: “Basically, this is expected. However, for the year it will be significantly below target.”
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