BUSINESS
Advocates Philippines
2022 Budget Deficit Decreases to 7.3%
The Philippine government's budget deficit for 2022 has decreased to 7.3 percent of GDP from the previous year's 8.6 percent, according to the Bureau of the Treasury's cash operations report. The deficit reduction was driven by a significant increase in revenue collections, which amounted to PHP3.5 trillion, exceeding the PHP3.3 trillion target for the year.
Tax revenues made up 91 percent of the total revenue collection, with a year-on-year growth of 17.4 percent, surpassing the target by 2.6 percent. Non-tax collections accounted for 9 percent of the total revenue collection, surpassing the 2022 program by almost 98 percent.
Finance Secretary Benjamin Diokno praised the revenue agencies for their dedication in exceeding their targets, saying that the fiscal performance is right on track with the Medium-Term Fiscal Framework target to reduce the budget deficit to 3.0 percent of GDP by 2028.
The Bureau of Internal Revenue's collection increased by 12.4 percent, amounting to PHP2.3 trillion, while the Bureau of Customs' collection climbed to PHP862.4 billion, outperforming the target by 19.5 percent.
Other offices' collections, including privatization proceeds, fees, and charges, amounted to PHP170.4 billion, surpassing the program by 68.6 percent. The upturn was mainly due to the one-off remittances from the Department of Social Welfare and Development and Philippine Charity Sweepstakes Office, as well as higher collections from the Bases Conversion and Development Authority and Department of Foreign Affairs.
The BTr's income also reached PHP154.8 billion, surpassing the full-year program by PHP91.3 billion, mainly driven by higher remittances of dividends on shares of stocks, income from Bond Sinking Fund investments, and interest on NG deposits.
The December 2022 collection of PHP268.2 billion was also higher compared to the previous year by 16 percent. The revenue effort, which covers the share of tax revenues, non-tax revenues, and other government agency revenues in relation to GDP, improved to 16.1 percent from 15.5 percent in 2021, while tax effort grew to 14.6 percent from 14.1 percent in 2021.
Secretary Diokno said that the Philippines is on track to achieving the goal of raising the tax effort to 17.1 percent by 2028. The robust revenue performance was supported by efforts to ensure the recovery of deficient duties and taxes, improve tax compliance, tariffs on rice imports, and public auctions of overstaying cargo.
Tax revenues made up 91 percent of the total revenue collection, with a year-on-year growth of 17.4 percent, surpassing the target by 2.6 percent. Non-tax collections accounted for 9 percent of the total revenue collection, surpassing the 2022 program by almost 98 percent.
Finance Secretary Benjamin Diokno praised the revenue agencies for their dedication in exceeding their targets, saying that the fiscal performance is right on track with the Medium-Term Fiscal Framework target to reduce the budget deficit to 3.0 percent of GDP by 2028.
The Bureau of Internal Revenue's collection increased by 12.4 percent, amounting to PHP2.3 trillion, while the Bureau of Customs' collection climbed to PHP862.4 billion, outperforming the target by 19.5 percent.
Other offices' collections, including privatization proceeds, fees, and charges, amounted to PHP170.4 billion, surpassing the program by 68.6 percent. The upturn was mainly due to the one-off remittances from the Department of Social Welfare and Development and Philippine Charity Sweepstakes Office, as well as higher collections from the Bases Conversion and Development Authority and Department of Foreign Affairs.
The BTr's income also reached PHP154.8 billion, surpassing the full-year program by PHP91.3 billion, mainly driven by higher remittances of dividends on shares of stocks, income from Bond Sinking Fund investments, and interest on NG deposits.
The December 2022 collection of PHP268.2 billion was also higher compared to the previous year by 16 percent. The revenue effort, which covers the share of tax revenues, non-tax revenues, and other government agency revenues in relation to GDP, improved to 16.1 percent from 15.5 percent in 2021, while tax effort grew to 14.6 percent from 14.1 percent in 2021.
Secretary Diokno said that the Philippines is on track to achieving the goal of raising the tax effort to 17.1 percent by 2028. The robust revenue performance was supported by efforts to ensure the recovery of deficient duties and taxes, improve tax compliance, tariffs on rice imports, and public auctions of overstaying cargo.
Mar 1, 2023
