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FINANCE
Secretary Margarito Teves acknowledged on Tuesday the
revenue numbers have not kept up with expectations in
the first five months, resulting in a deficit of P41.8
billion during the period.
In May
alone, he told a press conference, this totaled P1.7
billion and indicated the collections of the Bureau of
Internal Revenue had lagged behind the country’s nominal
output, or its gross domestic product (GDP).
“We’re
not faring well in our collections in relation to GDP,”
Teves, who previously offered to resign his post in
accordance with a Malacañang directive, said.
He noted
the BIR’s five-month revenues grew by only 6.6 percent,
or by P17.6 billion, to P285.6 billion even though
nominal GDP, which is used in projecting revenue
collections, grew at a faster clip of 9.9 percent.
Revenues
generated by the Bureau of Customs were worse, having
fallen by 1.7 percent, or by P1.2 billion, to just P75
billion during the period from P76.2 billion a year ago.
Even the
Bureau of Treasury under an officer-in-charge following
the resignation of former Treasury chief Omar Cruz
posted a 5.1-percent decline, with collection falling by
P1.3 billion to P25.3 billion.
Malacañang, however, believed it could still meet its
P63-billion target deficit for the year despite the
P1.7-billion deficit it incurred in May.
“I
believe even the deficit targets up to 2008 are on
track. We have the ups and downs in revenue collections,
that’s why it’s very important that we monitor all
collections very closely,” Press Secretary Ignacio Bunye
told Palace reporters.
Bunye
said the government can still make up for the revenue
shortfall, which stood at P41.8 billion in May, and meet
its target for a balanced budget next year.
“It
seems that even with this slight deviation from the
collections, the 2008 targets will still be met,” he
said.
Bunye
added that any shortfall in collections “will definitely
be looked into not only by the Finance department but
also by the Palace because it’s very important that we
are able to collect our taxes effectively.”
Bunye,
however, declined to say whether the latest revenue
figures would have any bearing on the fate of the main
revenue collection chiefs, particularly Bureau of
Internal Revenue commissioner Jose Mario Buñag, whose
performance is being reviewed by President Arroyo.
Asked
whether the latest figures would be considered by the
Chief Executive in reviewing Buñag’s performance, Bunye
said: “Let me just say in general terms that the
economic management team will definitely look at this,
they will definitely find out the whys and wherefores,
and institute proper remedies.”
Buñag
was reported to be on the way out last week because of
the BIR’s poor collections, which he had attributed to
the unexpectedly low inflation rate, among others.
The
rumors were put to rest, at least temporarily, after the
President met Buñag and Finance chief Teves on June 12,
and decided to undertake a further review of the revenue
situation before making any changes in the BIR.
Meanwhile, an analysis conducted by the Department of
Finance using numbers reported in the first three months
shows that of the BIR’s P12.1-billion shortfall in that
period some P9.7 billion may be attributed to
inefficiencies.
The
study showed the BIR was weakest in collecting corporate
income, excise tax on petroleum, insurance premium,
excise tax on tobacco and excise taxes in general.
The DOF
study noted the real-estate sector boom should have
pushed capital gains collection upward, but this instead
fell by 27 percent.
The BIR
argued that capital gains resulting from the sale of new
houses and lots are business-related activities that by
law must be reflected under personal rather than under
the corporate income bracket.
But the
BIR has no explanation as to why corporate income tax
collection fell this year by 15.1 percent versus growth
of 27 percent last year.
No
explanation was also offered why insurance premium tax
fell when the industry itself reported a 17-percent
expansion and why tobacco excise tax underperformed by
2 percent.
Five-month revenues grew by 11 percent from year ago of
P389.8 billion to P432.6 billion.
Disbursements totaled P474.3 billion or 9 percent higher
than previous.
“We
settled all our payables during the period and our
capital expenditures hit 100 percent,” Budget Secretary
Rolando Andaya explained.
The full
capex utilization was in line with all-out spending
related to the buildup in infrastructure across the
country, Andaya said.
Net of
interest payments, expenditures for the period actually
increase by 21.2 percent, he added.
“We are
pleased to see that savings in interest payments helped
government boost spending in necessary infrastructure
and social services,” Teves also said.
Teves
vowed to step up collections from nontax measures such
as the sale of more government assets to put the
revenues back on track. |
