The national government recorded a 1.2-percent deficit-to-gross domestic product (GDP) ratio at the end of the third quarter.
Data from the Department of Finance (DOF) said that the deficit-to-GDP ratio as of September was “way below” the projected 2-percent ratio for 2013. Budget deficit was recorded at P101.2 billion in the third quarter, or P2.7 billion lower compared to the same period last year.
The DOF data, however, added that the deficit for the first nine months of 2013 was “well within” the target of P144.5 billion for the period. Revenue collections, on the other hand, reached P1.267 trillion in the same quarter. It increased by 13.2 percent from the comparable collections recorded in 2012.
For the same period, the tax effort of the government stood at 13.7 percent, a 0.6-percentage point increase from the same period in 2012. The agency also noted that the tax effort of the Bureau of Internal Revenue (BIR) rose to 10.8 percent, a 0.6-percentage point increase from the same period last year.
“This is the highest BIR tax effort since 2000,” it stated. The tax bureau collections grew by 16.2 percent compared to the same period last year, “much faster” than the nominal GDP growth of 9.3 percent, the DOF said. The Finance department further said that excise tax collections on alcohol and tobacco products largely contributed to the growth in BIR collections. Excise tax collections on alcohol and tobacco products increased 41 percent and 83.5 percent, respectively.
Meanwhile, the data added that actual disbursements amounted to P1.368 trillion, an 11.8-percent increase compared to the same period last year. Revenues grew faster than disbursements over the same period last year.