Budget deficit nearly doubles year-on-year in September | Economy ...

The national budget deficit reached P34.854 billion in September, nearly twice the P18.501 billion a year earlier, as the government continued to spend for programs and boost revenues, the Department of Finance (DOF) reported Wednesday.

This brings the deficit in the first nine months of 2012 to P106.05 billion, well below the government's deficit ceiling for 2012 of P279 billion, or 2.6 percent of GDP, for this year.

Its current fiscal position gives Philippines enough space for to finance its projects, said Finance Secretary Cesar Purisima.

In September, revenues increased by 0.9 percent?to P105.309 billion, while expenditures rose 14.1 percent to P140.163 billion.

In the first nine months of the year, ?government raised P1.118 trillion in revenues ? 10 percent more than it raised in the same period in 2011; expenditures, meanwhile, grew by 14.5 percent to P1.225 trillion from P1.070 trillion.

?With the higher expenditure growth due to improving absorptive capacities of departments and agencies, we are again confident that government spending will again contribute significantly to economic growth in the third quarter,? said Budget Secretary Florencio Abad.

Collections

The Bureau of Internal Revenue took in P71.036 billion in September, a 6.7-percent rise from P66.547 billion int eh same comparable period. In the nine months to September, the BIR?s collections climbed by 12.6 percent to P772.468 billion from P686.260 billion.

BIR Commissioner Kim Henares said the bureau will likely reach an unprecedented P1 trillion in collections in 2012, though its actual target of P1.066 trillion will be harder to reach.

?Our aggressive efforts to improve tax compliance [have] consistently generated fiscal space to provide funding for the Aquino administration?s spending priorities,? said Purisima.

The Bureau of Customs also showed an improvement in its collections last month, with P23.208 billion or 2.6 percent higher year-on-year from P22.408 billion.

In the first nine months to September, the BOC?s collections increased by 9.8 percent to P213.656 billion from P194.607 billion.

The BOC?s target for 2012 is P347 billion.

Purisima said he hopes the Senate will approve a measure that would bring revenues from sin taxes to at least P40 billion a year.

?We have no reason to doubt the pronouncements of the acting chair of the ways and means committee, Senator Frank Drilon, that the Senate will maximize the health and revenue impacts of the reform of excise taxes on tobacco and alcohol,? he said.

The Senate will resume discussions on the bill next month. ? BM/VS, GMA News

Source: http://www.gmanetwork.com/news/story/279525/economy/finance/budget-deficit-nearly-doubles-year-on-year-in-september

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