Fiscal deficit in September at Php 21.6 billion

Ma. Lourdes “Miami” Ebilane
October 20, 2008
Story: Fiscal deficit in September at Php 21.6 billion

The Department of Finance has reported a budget deficit of about Php 21.6 billion for the month of September due to “higher spending.”

“Total revenues for last 9 months was shorten by Php 14.1 billion as against the collection goal of Php894 billion for the period,” Finance secretary Margarito Teves said during the press briefing for the Fiscal performance at the Banko Sentral ng Pilipinas.

There was a shortfall because of the increase in spending for social services and infrastructures as explained by Teves. “With the global economic slowdown, we need to spend for social services and infrastructures to help our people,” he said.

Revenue collections in September reached php89.6 billion or 10% higher compared to the same month last year. Bureau Internal Revenue (BIR) collections grew by 14% to Php55.8 billion while Bureau of Customs (BOC) revenues increased by35.1 or Php25.8 billion.

Of total revenues, BIR collected Php 587.9 billion, lower than its collection goal by Php 18.9 billion. The BOC posted Php 193.2 billion in revenues, Php 7.3 billion more than its target because of higher rice importation by National Food Authority.

“Biggest contributor to the shortfall is the effect of the additional exceptions on income tax, as for the BIR concern, this was effective last July 2008 but the implementing rules and regulations only came out last September,” Teves explained.

During the press briefing, Teves introduced the new BIR commissioner as Atty. Sixto Esquivias. According to him, he already worked at the BIR for about 23 years since 1977 until he reached the position as deputy commissioner.

In 2000, Esquivias resigned and went into private sector put up his own law firm that focuses on taxation. He will assume the post this November. So far, Esquivias said he still have to meet with the economic team on what to do with the BIR, but he vowed that he will work on collecting taxes, especially to those who are not paying their taxes.