''Underspending' shaves deficit in 0
THE STME3 fiscal deficit shrank last
qusrtor amid "underspending" witl de-
layed enactment of the 2019 national'
budget, according to preliminary Bureau
of th9 Treasury (BTr) data which the Fi-
nance dgpartment released on Thursday.
Citing BTr report submitted to him
a operated on a reenacted 2ol8 national
on April lZ Finance Secretary Carlos
G. Domlnguez cited in a viber message
to roporters "P.1.01 bln lbillion] daily
underspeirding f or primary expenditures
(non-intercst payments) for Janluary]-
Margh, bdsed on BTr estimates."
First-qufter fiscal deficit shrank 417o
year-on-year to P90.245 billion, missing
the program by 5270, In March alone,
tlle fiscal deficit shank by 47% annually
to P58.4o9 billion, falling 5170 short of
program,
Whittling the defiiit were smaller
state disbursements as the government
budget tjlat left new programs and proj-
ects untunded. President Roddgb R.
Duterte finally signed the national budget
into law on April 15, nearly four montls'
late, as approval ofthe spending plall was
stalled by a tiff between leaders of the
House ofRepresentatives and the Budget
department, and tllen between the House
/=R arut tsr OF
and the Senate which accused each otler
ofirregular fund realignments. He vetoed
about P95,3 billion in appropriations that
he said were not in accordance u,ith his
idministrationt priorities, slashing this
year's national budget to P3.662 trillion.
Consequently, state disbursements
missed the program by lLvo at P777.9d
billion in tlte first quarter, although th€y
edged up a percent from a year ago. In
March alone, state spending fell by eight
percent from a year ago ard fell 1670 short
ofprogram at P287.327 billion.
State revenue collections sustained
double-digit growth rates last quarter,
increasing by 1I7o year-on-year though
narrowly missing the progmm by O.O3%
at P6a7.745 billion. Collections of the
Bureau of lnternal Revenue and of the
Bureau of Customs went up by l17o and
nine percent respectively, while non-
tax revenues "rose by 18% with higher
dividends from remittances from BSP
@angko Sentral ng Pilipinas) and PDIC
(Philippine Deposit Insurance Corp.)
totalling P8.6 billion."
March alone saw state revenue col-.
lectors ra.ke in I37o more from a year ago
and top the program by three percent at
P22a-918 billion.
Michael L. Ricafort, econorhist r
Rizal Commercial Banking Corp.
in a mobile phone message: "The
budget deficit data may somewhat r
the delays in the 2Ol9 national br
despite tie sustained grorth in go
ment spending especially on infrar
ture as well as increased govern
spending related to the upcoming
. term elections in May 2019."
"With the 2ol9 national budge
acted into law last week, govern
spending may pick up again in the cc
months, thereby leading to faster eco
ic growtfi." - Reicelene J, N] Ignac