Gov’t likely to miss deficit target as spending slows, revenues recover

Stranded commuters are seen at Commonwealth Ave. in Quezon City during the implementation of modified enhanced community quarantine on August 4, 2020.

The STAR / Michael Varcas

MANILA, Philippines — The Duterte administration will likely miss its budget deficit target this year as easing coronavirus restrictions boost revenue collections while economic managers continue to temper spending to avoid more borrowings. 

The government posted a budget deficit of P64.3 billion in October, up 10.90% year-on-year, the Bureau of the Treasury reported Thursday. This brought the 10-month gap to P1.2 trillion, 27.94% bigger compared with a year ago.

A deficit means the government is spending beyond its means. Since the health crisis hit home last year, the state has been incurring large deficits as pandemic expenses continued to balloon, while elevated unemployment and business closures as a result of lockdowns sapped tax collections. To bridge the budget gap, the government would have to borrow more money from creditors at home and abroad.

Full Story: https://www.philstar.com/business/2021/11/25/2143744/govt-likely-miss-deficit-target-spending-slows-revenues-recover