BUSINESS June budget deficit hit P225b on lower tax haul

By Julito G. Rada

THE government’s budget deficit widened 4.6 percent in June to P225.4 billion from P215.5 billion a year ago as revenue collection fell 7.91 percent, the Bureau of the Treasury said Friday.

It said this brought the budget gap in the first half to P551.7 billion, although this was 18.17 percent lower than the shortfall of P674.2 billion in the same period last year. The first-half figure was also 28.49 percent below the P771.5billion mid-year deficit program.

In Brief

Revenue collections fell 7.91 percent, or P23.0 billion, in June to P267.3 billion. Despite the decline during the month, the total revenues in the first six months increased 7.68 percent to P1.9 trillion and surpassed the target by 2.72 percent or P49.2 billion.

About 89 percent of the cumulative collections came from taxes, while the remaining 11 percent represented nontax collections.

Data showed that tax collection by the Bureau of Internal Revenue contracted 5.07 percent, or P8.8 billion, in June to P164.7 billion. Overall collection in the first half, however, grew 7.65 percent, or P86.7 billion, to P1.2 trillion, but missed the target for the period by 2.57 percent or P32.2 billion.

Customs’ collections went down by 2.72 percent in June to P74.1 billion from a year ago, but its cumulative sixmonth performance climbed 9.26 per- cent, or P36.7 billion, to P433.4 billion.

It also topped the target by 3.04 percent or P12.8 billion.

Income generated by the Bureau of the Treasury settled at P10.8 billion in June, 48.19 percent or P10 billion lower than a year ago on reduced dividend remittances. Its cumulative income of P93 billion was also down by 10.68 percent, or P11.1 billion, from last year’s P104.1 billion.

The Treasury said its six-month performance surpassed the program for the period by 92.20 percent or P44.6 billion and was already 59.52 percent or P34.7 billion higher than the P58.3 billion full- year program. Revenue collections from other offices amounted to P17.7 billion in June and P110.2 billion in the first six months.

Government expenditures in June went down by 2.59 percent, or P13.1 billion, to P492.7 billion on lower national tax allotment shares of local government units and outstanding checks, or those issued but not yet presented for payment or enchashment by suppliers or creditors in various agencies. The total disbursements in the first six months slightly increased by 0.42 percent to P2.4 trillion, but fell short of the P2.6-trillion first-half program.

Home prices increased 10.2%

in first quarter

HOME prices in the Philippines rose 10.2 percent in the first quarter of 2023 from a year ago.

“On a year-on-year basis, growth in residential property prices in the National Capital Region slowed to 7.3 percent as the price decline in condominium units dampened the price increases in duplexes, single-detached/ attached houses, and townhouses,” the Bangko Sentral ng Pilipinas said Friday.

It said in areas outside the NCR, residential property prices rose 11.4 percent. “On a quarter-on-quarter basis, residential property prices expanded by 4.4 percent in the AONCR, but contracted by 4.3 percent in the NCR,” it said.

The BSP said the number of residential real estate loans (RRELs) granted by banks for all types of new housing units grew by 16 percent year-on-year as loans in the NCR and AONCR increased by 16.5 percent and 15.7 percent, respectively.

The average appraised value of new housing units in the country reached P73,724 per square meter in the first three months. The appraised value per sq. m. in the NCR was P123,053, higher than both the national average and the average appraised value in AONCR at P51,459. Julito G. Rada

ACEN gets SEC clearance on P50-b share issuance

THE Securities and Exchange Commission said Friday it approved the P50-billion shelfregistration of ACEN Corp., the listed energy platform of the Ayala Group.

The SEC said in a statement it approved the registration statement of ACEN covering Series A and B green preferred shares that may be issued in one or more tranches within a period of three years, subject to the company’s compliance with certain remaining requirements.

It said for the first tranche, ACEN would offer P12.5 billion of preferred shares, with an oversubscription option for another P12.5 billion. ACEN plans to use the proceeds to refinance short-term loans for eligible green projects, including solar projects in Pangasinan, Zambales and Cagayan and wind project in Ilocos Norte.

The company will offer the preferred shares to the public from Aug. 11 to 23 in time for listing on the Philippine Stock Exchange on Sept. 1, according to the latest timetable submitted to the SEC. Jenniffer B. Austria

E-visa system to lure more foreign visitors

THE Department of Tourism said Friday it expects the implementation of the electronic visa system to boost international visitor arrivals in the Philippines.

Tourism Secretary Christina Frasco said the e-visa system would improve the experience of inbound travelers and tourists and positively impact international arrivals especially from the Chinese and Indian markets.

“We believe that this will also foster even closer people-to-people exchanges, cultural understanding, and vibrant tourism cooperation,” Frasco said.

The DOT said more than 1.7 million Chinese visitors arrived in the Philippines in 2019. Data showed that as of July 26, 2023, there were 137,822 Chinese arrivals, following the recent lifting of travel restrictions in China. Frasco said the e-visa system would help raise the confidence level of airlines, charter operators and travel agents to resume flights from various points in China directly to tourist destinations in the Philippines such as Boracay, Bohol, Cebu, Legaspi, Clark, Laoag, Lallo and Manila.

“Certainly, the e-visa will be a game changer in the Chinese market, which currently prefers other Southeast Asian destinations such as Thailand, Indonesia, Vietnam, Malaysia and Cambodia which provide landing visa to Chinese travelers thus gaining faster momentum for the tourism recovery of these countries from the negative impacts of the pandemic,” Frasco said.

Othel V. Campos