NG posts ₧76.7-B budget deficit in Jan-Feb By Reine Juvierre S. Alberto
T THE WORLD | A17
ISRAELI MILITARY WITHDRAWS FROM GAZA’S LARGEST HOSPITAL, LEAVING DESTRUCTION AND BODIES BEHIND
ROTARY CLUB OF MANILA JOURNALISM AWARDS
2006 National Newspaper of the Year 2011 National Newspaper of the Year 2013 Business Newspaper of the Year 2017 Business Newspaper of the Year 2019 Business Newspaper of the Year 2021 Pro Patria Award PHILIPPINE STATISTICS AUTHORITY 2018 Data Champion
HE national government posted a P76.7-billion budget deficit in the first two months of the year as expenditures outpaced total revenues, according to the Bureau of the Treasury (BTr). Latest data from the Treasury released on Monday said the deficit was 26.56 percent higher than the P60.6 billion posted by the state in the same period last year. The state’s budget deficit rose by 54.81 percent year-on-year to P164.7 billion in February 2024 from P106.6 billion, according to Treasury’s data.
“The wider budget gap stemmed from the 22.14 percent year-overyear [YoY] increase in expenditures, matched with moderate revenue growth of 5.73 percent,” the Treasury explained. The state’s total revenues for the January to February period increased by 15.32 percent to P645.8 billion from P560 billion in the previous year, while its expenditures also increased to P722.5 billion from P620.7 billion on an annual basis. Broken down, 92.36 percent of the national government’s revenue collections for the period were raised through taxes at
P92.36 percent or P595.5 billion, while the remaining 7.64 percent or P49.4 billion came from nontax sources. For the January to February period, the Bureau of Internal Revenue (BIR) collected a total of P446.4 billion, posting a doubledigit YoY growth of 22.58 percent from P364.2 billion, based on Treasury’s data. Cumulative collections by the Bureau of Customs (BOC) grew by 7.84 percent year-on-year to P144 billion from P133.5 billion. Non-tax revenues by the Treasury for the two-month period went down by 3.80 percent to
P23.3 billion from the P24.2 billion recorded last year due to lower interest income on the state’s deposits and Treasury’s investments. Meanwhile, collection from other offices (other non-tax including privatization proceeds and fees and charges) for the twomonth period also declined YoY by 21.33 percent to P26.1 billion from P33.2 billion. On the other hand, government expenditures for January to February 2024 also expanded by 16.42 percent to P722.5 billion from P620.7 billion.
BusinessMirror
Continued on A4
EJAP JOURNALISM AWARDS
BUSINESS NEWS SOURCE OF THE YEAR
(2017, 2018, 2019, 2020, 2021) DEPARTMENT OF SCIENCE AND TECHNOLOGY
2018 BANTOG MEDIA AWARDS
BSP’S MARCH OUTLOOK: w
n
Tuesday, April 2, 2024 Vol. 19 No. 168
P25.00 nationwide | 2 sections 28 pages |
INFLATION AT 3.4-4.2% By Cai U. Ordinario @caiordinario
THE recent increase in inflation is expected to continue in March 2024 as rice and meat prices remained elevated, according to the Bangko Sentral ng Pilipinas (BSP). In its latest inflation outlook, BSP said inflation could settle within the range of 3.4 to 4.2 percent in March 2024. The BSP’s inflation target is 2 to 4 percent in the near- and medium-term. Data from the Philippine Statistics Authority (PSA) placed the country’s inflation rate at 3.4 percent in February 2024 and 7.6 percent in March 2023. The latest inflation print will be released on Friday, April 5. “Continued price increases of rice and meat along with higher domestic oil prices and electricity rates are the primary sources of upward price pressures for the month,” BSP said. In February 2024, rice inflation increased 23.7 percent and 26.3 percent for All Income and Bottom 30 percent households, respectively. The PSA said regular-milled, wellmilled, and special rice categories all exhibited double-digit increases year-on-year and single-digit growth month-on-month. The data showed that prices of Meat and Other Parts of Slaughtered Land Animals also increased 0.7 percent for All Income Households and 0.9 percent for the Bottom 30 percent in February 2024. See “Outlook,” A2
VISUAL OASIS Under the scorching summer sun, a captivating mural comes to life on the corner wall of 9th Avenue in Cubao, Quezon City. As a pedestrian strolls by, seeking shelter under an umbrella to escape the intense heat, the colorful artwork provides a refreshing scenic refuge amid the blazing summer atmosphere. BERNARD TESTA
‘PHL COULD HIT SINGLE-DIGIT POVERTY 2 YRS AHEAD OF SKED’
B
ET TER labor market conditions and slower inflation in the country could turn the administration’s single-digit poverty incidence aspirations into a reality two years ahead of schedule. This was according to the latest Macro Poverty Outlook (MPO) for the Philippines, released by the World Bank on Monday. It estimated that poverty incidence in the country could decrease to 9.3 percent in 2026 from 12.2 percent this year and 17.8 percent in 2021. The World Bank said this was based on the poverty line
for lower-middle income countries which is pegged at $3.65 per day using 2017 Purchasing Power Parity (PPP). “The continuous improvement in the labor market and the easing of inflation will likely boost growth in household incomes. Poverty is expected to continue to decline but extreme climatic events continue to pose risks,” the World Bank said. The risks to the outlook include “wage pressures from tightness in labor market conditions.” See “PHL,” A2
Persisting higher US rates to hurt region twice–WB
H
IGHER interest rates in the United States may persist and create a “double whammy” for East Asia and the Pacific nations including the Philippines, according to the World Bank. In a virtual briefing on Monday, World Bank East Asia and Pacific Chief Economist Aaditya Mattoo said this double whammy will come in the form of “financial tightening and growth tightening.” Mattoo explained that financial tightening could happen given that higher interest rates in the US are forcing central banks in the region to maintain high interest rates. With high interest rates, this could
dampen economic growth in the region. “In the United States, you might well see interest rates even higher for longer and that would certainly affect growth throughout the region as we have estimated and that will also hurt recovery so there will be this double whammy of financial tightening and growth tightening,” Mattoo said. Given this, the World Bank’s East Asia and Pacific April 2024 Economic Update published on Monday project that the Philippines’s economic growth will remain below 6 percent until next year. See “US rates,” A2
PESO EXCHANGE RATES n US 56.2600 n JAPAN 0.3718 n UK 71.0845 n HK 7.1906 n CHINA 7.7906 n SINGAPORE 41.6957 n AUSTRALIA 36.6534 n EU 60.7214 n KOREA 0.0418 n SAUDI ARABIA 15.0018 Source: BSP (April 1, 2024)