By Chino S. Leyco

The Duterte administration assured the government would not exceed the budget deficit ceiling this year despite the slightly above programmed expenditures in the first nine-months of the year, the Department of Budget and Management (DBM) said.

Budget Secretary Benjamin E. Diokno said yesterday that the three-percent budget deficit to gross domestic product (GDP) ratio incurred in January to September is not a major concern, citing the government expects stronger revenues in the fourth-quarter.

Diokno added that higher deficit spending is also normal for growing economies, like the Philippines.

“Remember the deficit to GDP ratio, that’s for the first three-quarters. So we still have program deficit for the fourth quarter. And we’re optimistic that we’re collecting more,” Diokno told reporters during the Pandesal forum in Quezon City.

For 2018, the Duterte administration programmed its budget deficit ceiling to be at three-percent of GDP.

“Revenues will be much higher I think [for the fourth-quarter] as a result of the Christmas season. Secondly, since we have front-loaded already in the first three quarters then we won’t spend so much in the fourth quarter,” Diokno said.

“There’s no danger that we will breach our three percent deficit to GDP ratio, the budget chief assured.

At end-September, the national government’s fiscal deficit widened by 78 percent to P378.2 billion, already accounting for three percent of the country’s GDP.

But in nominal terms, the Duterte administration’s financing gap in the nine-month period remained well below ceiling owing to higher revenue collections.

Data from the Bureau of Treasury had reported that the national government’s budget deficit in January to September was below by five percent compared with the P396.6 billion program for the period.

The below ceiling budget gap was registered despite the three percent overspending in the first three-quarters.

At end-September, expenditures amounted to P2.49 trillion, higher by P62.6 billion against the target of P2.427 trillion. Of that amount, interest payments reached P271.3 billion, while other spending stood at P2.218 trillion.

Total revenues, on the other hand, surpassed the P2.03 trillion target for the period by four percent to P2.111 trillion due to higher income of the Treasury bureau, which raised P90.5 billion, or double the P45 billion goal.

The Bureau of Internal Revenue (BIR) collected P1.444 trillion at end-August, while the Bureau of Customs generated P434.6 billion and other offices with P142.2 billion.

Year-on-year, the national government’s budget deficit increased by 78 percent in January to August from P213.1 billion.

Revenues increased by 17 percent from P1.801 trillion, while expenditures rose 24 percent from P2.014 trillion.

In September alone, the fiscal deficit reached P96.2 billion, up 161 percent compared with P36.9 billion in the same month last year.

Revenues in September slightly increased by one percent to P202.4 billion from P200.1 billion, while expenditures rose by 26 percent to P298.6 billion from P237 billion.