Government revenue and GDP performance saw the ranking in the middle of the pack within ASEAN
The Department of Finance (DoF) said the performance of national government (NG) revenue, as a proportion of gross domestic product (GDP), would place the Philippines around the median of the Association of South Asian Nations. -East (ASEAN).
In a statement Monday, DOF National Funding Group Director Rowena S. Sta. Clara, reportedly said in a report at a recent DoF executive committee meeting that the Duterte administration’s average revenue effort between 2016 and 2021 was 15.6% of GDP, the highest in more than 20 year.
The DoF said the improvement in income levels had been shown despite the restrictions imposed during the various stages of the pandemic.
The report used data from the International Monetary Fund, which forecasts income Effor other ASEAN members. The Philippine data was taken from the Cash Operations Report of the Office of the Treasury, Ms. Sta. Clara said.
Brunei tops the list with income effrate of 19.1%, followed by 18.7% for Singapore and 17% for Thailand. Recipes from Malaysia and Indonesia effThe rates are projected at 14.3% and 11.8%, respectively.
All data except for the Philippines and Indonesia are forecasts.
On the spending side, the Philippines was second in ASEAN with 4.7 trillion pesos or 24.1% of GDP, Ms Sta. Clara said.
She also noted that the 10.6% growth in NG spending in 2020 and 2021 was the result of spending on infrastructure and other capital spending, spending on pandemic recovery measures, injections equity in support of government loan programs and personal services expenses, which have increased. 30% of GN spending over the past decade.
Brunei had an expenditure to GDP ratio of 28.4%, while Singapore was third at 21.1%.
All six ASEAN countries posted fiscal deficits in 2021. The Philippines’ deficit was the second-largest at 8.6% of GDP, surpassed only by Brunei at 9.3%. Malaysia came third with 6.4%.
At the 181 meeting of the Development and Budget Coordination Committeest at its May 24 meeting, the deficit-to-GDP ratio target for this year was set at 7.6%, falling to 6.1% in 2023.
NG’s debt hit a record 12.76 trillion pesos in April, due to COVID-19-related borrowing and to support economic recovery.
The DOF said the debt would have been much higher at 15.4 trillion pesos in 2022 had it not blocked revenue raising measures and reduced Covid-19 stimulus bills. These would have resulted in additional expenditure amounting to 2.2 trillion pula if these measures had been passed by Congress. — Tobias Jared Tomas