National Government (NG) spending sped up despite the delay in the passage of the 2019 national budget. Last minute December disbursements surged by 57.8%, year-on-year, bringing full-year government expenditures to an annual growth of 11.4%.

On an annual basis, “Productive Spending” or expenditures net of interest payments reached PhP3,436.9 billion, increasing 12.3%. While, total “Interest Payments” (IP) was PhP360.9 billion. Revenue effort, on the other hand, went up 16.7% from 16.4% the previous year. Tax effort at 15.2%, however, was lower than the goal of 15.5% but higher than 2018’s 14.7%. The BIR notched an 11.5% improvement from last year, and the BoC’s net revenue take was 6.3% better than the previous period. The BTr, meanwhile, generated PhP146.5 billion, almost double the programmed amount for the year. The full-year deficit was at 3.55% of GDP, higher than the 2019 target of 3.25%.

Article by: Ruben Carlo Asuncion

Disclaimer: While this document is based on information obtained from sources we believe to be reliable, we do not make any representations as to its accuracy, completeness, correctness, timeliness or use for any particular purpose. Opinions and statements expressed here are those of their author(s) as of the date of this report and not of Union Bank of the Philippines (UBP). The opinions and statements provided in this document are subject to change without prior notice. Any recommendation contained in this document does not have regard to the reader’s particular investment objectives, financial situation and any other specific needs. This document is for informational purposes only and UBP is not soliciting any action based on it. Nothing here shall to any extent substitute for the independent investigations and the technical and business judgment of the reader. Your use of this document and any of its contents is at your own risk and UBP does not accept any liability for the results of any action or decision taken on the basis of or reliance on this document or any of its contents