Connect with us

Hi, what are you looking for?


Budget deficit at 8.3% of GDP as of end-Sept.


THE GOVERNMENT’S budget deficit went up to 8.3% of the country’s gross domestic product (GDP) as of end-September, data from the Department of Finance (DoF) showed.

This is higher than the 6.9% of GDP a year ago, but still below the Development Budget Coordination Committee’s (DBCC) 9.3% projection this year.

DoF data released on Monday showed that in the third quarter alone, the budget deficit as a percentage of GDP hit 9.2% — higher than the 7.4% and 8.3% seen in the first and second quarters, respectively.

The deficit widened as the government’s expenditure-to-GDP ratio went up to 24.6% in the nine-month period, compared with 23.6% in the same period last year.

Meanwhile, total government revenue as a percentage of GDP fell to 16.3% as of end-September compared with 16.8% last year.

Tax effort went up to 14.8% from 14.5% in 2020.

“(The) wider budget deficit (was) largely brought about by the adverse effects of the COVID-19 pandemic/lockdowns in terms of reduced tax collections and increased government spending on ayuda/financial assistance/various COVID-19 programs,” Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in a Viber message.

The National Government’s budget deficit in the nine months to September increased by 29.56% to P1.1 trillion compared with the shortfall last year, data from the Bureau of the Treasury showed last month.

This was still 20.11% lower than the P1.4-trillion adjusted year-to-date goal and was 61% of the revised P1.8-trillion full-year budget deficit ceiling set by economic managers.

In September alone, the fiscal gap expanded by 30% to P180.9 billion from P138.5 billion a year earlier as spending outpaced a smaller increase in revenue collection.

Cid L. Terosa, a senior economist at the University of Asia and the Pacific School of Economics, had said that he expects the budget deficit to continue to widen in the fourth quarter as the government continues to increase spending to support economic recovery. — Jenina P. Ibanez

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories...


Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories...


source: ING BANK N.V.-Manila will leave the Philippine retail banking market before 2022 ends, just about three years after its foray into the...

Editor’s Pick

Autonomous warehouse robot maker BotsAndUs has secured $13m (£10.6m) in a seed round led by Swiss venture capital firm Lakestar. London-based BotsAndUs will use...

Editor’s Pick

Porsche Ventures has invested $1.5m (£1.2m) into British cycling insurance provider Laka as part of a wider $13.5m (£10.9m) Series A funding round. Headquartered...

Editor’s Pick

Netflix has announced another round of job cuts as it grapples with slowing growth and increased competition. The streaming giant said it was cutting...

You May Also Like


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Financial Advisors

The healthcare ecosystem is one that has thrived on the cusp of scientific progress, benefitting enormously from the winds of change in the technological...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.