Government revenue grew by 2.5%
First semester revenue increased by 2.5% year-on-year
MANILA – The first six months of 2021 saw an increase in the national government’s revenue by 2.5% than the figure recorded last year to the tune of P1.49 trillion.
As the non-tax revenues declined by 38.5%, tax revenues increased by 10.5%. The Bureau of Internal Revenue’s (BIR) collections rose by about 8% while the Bureau of Customs’ (BOC) “dramatically increased” by 19.2%. Tax collections in the first half of 2021 fell 2,6% short of the pre-pandemic revenues of about P1.6 trillion.
According to the Department of Finance (DOF) statement released Sunday, last year’s non-tax revenues profited from the P157 billion dividends from government corporations for the whole of 2020, the bulk of which was collected in the first semester.
Meanwhile, expenditures for the first semester of 2021 increased by 9.6%, although at a slower pace than last year’s 26.6%. Disbursements for capital outlay rose by 53.5%.
According to the DOF, the fiscal sector, said to be the economy’s Achilles heel, has transformed into a strong pillar of the country’s development. The COVID-19 pandemic has made the road bumpy but the fiscal sector, together with the monetary sector, has provided a shock absorber to the economy while it continues to provide support for the economy’s recovery.
“While tax revenue intake has declined last year, spending has actually increased,” the statement disclosed. It added the existing socio-economic programs (CCT, UHC, BBB) in place before the pandemic such that did not really have to redraw its economic recovery program.
Government corporations (GOCCs) continue to provide the revenue mobilization through hefty dividends.
“Unlike in previous crises, especially in the 1980s when GOCCs contributed to the widening fiscal deficit due to their poor financial conditions, GOCCS are now in tip-top shape as a result of GOCC reforms including close monitoring and performance evaluation,” the DOF statement concluded. (Melo M. Acuña)