The funds deficit narrowed by a fourth to P83 billion on the finish of the primary quarter as double-digit income progress outpaced the rise in authorities spending on public items and providers from January to March.

The newest Bureau of the Treasury information launched yesterday confirmed that whereas first-quarter expenditures of P615.four billion exceeded the P532.four billion in mixed tax and non-tax revenues, the deficit was 26-percent decrease than the P112.5 billion posted in the course of the first quarter of 2016.

At end-March, disbursements grew solely four % from P591.5 billion a yr in the past. To evaluate, authorities spending jumped 17 % year-on-year in the primary quarter of final yr because the Aquino administration ramped up expenditures forward of the 2016 national elections in May.

The Department of Budget and Management had mentioned in a latest report that “the growth of disbursements for the first few months of 2017 will be moderate partly due to base effect considering the high disbursements recorded for the same period in 2016 and since most line agencies are still in the process of obligating their allotments at the earlier part of the year.”

According to the DBM, spending was anticipated to rack up in the succeeding months towards the summer time season.

On the opposite hand, income collections in the course of the January-to-March interval jumped 11 % from P479 billion final yr. In distinction, tax and non-tax revenues in the primary three months of 2016 elevated by solely 2 %.

During the month of March alone, the funds deficit of P61.5 billion was additionally narrower than a yr in the past’s P74.four billion. Expenditures in March rose four % to P241.7 billion from P232.2 billion a yr in the past, whereas revenues climbed by a sooner 14 % to P180.2 billion from P157.eight billion final yr.

In a press release, the Treasury famous the sturdy collections progress posted by the nation’s two greatest tax businesses—the bureaus of Internal Revenue (BIR) and of Customs (BOC).

“The BIR achieved double-digit growth for the third consecutive month with March collection amounting P117.4 billion, from which P204 million in tax refunds paid to claimants resulted in final collections of P117.1 billion, still up 11 percent over last year’s level. This resulted in a P370.4-billion collection for the first quarter—a 12-percent or P40.2-billion increment from the first quarter of 2016,” the Treasury mentioned.

The BOC’s collections for March was additionally up 15 % year-on-year to P37.three billion, internet of the P803 million in tax refunds, and was the third consecutive month of double-digit progress for the BOC, the Treasury added.

For this yr, the funds deficit is focused to attain P478.1 billion.

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Source: inquirer