THE government incurred a narrow budget deficit in August on the back of the muted rise in spending amid the decline in revenues, data released by the Bureau of the Treasury (BTr) showed on Wednesday.
The actual P040.1 billion gap was lower than the P140.20-billion shortfall in July but significantly wider that the P2.5-billion deficit in August last year.
“The fiscal outturn resulted from the 13.05 percent year-over-year decrease in government receipts due to the continued impact of the pandemic outbreak with minimal growth in government expenditures for the period,” the Treasury bureau said in a statement.
Revenues slid to P243.2 billion in August from the previous year’s P279.7 billion.
Expenditures slightly picked up to P283.3 billion from P282.2 billion in August 2019, “mainly due to the timing of subsidy releases to the PHIC for the health insurance premiums of indigent beneficiaries enrolled under the National Health Insurance Program, where some P27.7 billion was released in August last year.”
In July, revenues fell by 11.22 percent and spending grew by 10.40 percent.
The August gap brought the year-to-date shortfall to P740.7 billion, wider than the P120.4 billion in the first eight months of last year.