PH gov’t swings back to budget deficit
The government’s fiscal position returned to deficit in February, after a sharp growth in spending outpaced the “moderate” increase in revenue collection.
The state posted a budget shortfall of P164.7 billion in the second month of the year, 54.81 percent larger than the P106.4 billion deficit a year ago, data released on Monday by the Bureau of the Treasury (BTr) showed.A budget deficit happens when the government spends beyond its means, while a surplus means the opposite.
Figures showed that the fiscal gap in February had reversed the P88-billion surplus recorded in January. It also brought the year-to-date budget deficit to P76.7 billion, up by 26.56 percent.
Dissecting the latest cash operations report of the BTr, total expenditures in February jumped 22.14 percent year-on-year to P388.7 billion on the back of higher fund releases to support the projects of local government units. The strong spending was also driven by larger disbursements recorded at the health and social welfare departments.
Of the P388.7 billion spent in February, P340.9 billion went to productive spending on state projects and programs, while P47.8 billion…
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