Business and Economy
ITR deadline extension won’t impact gov’t spending: Dominguez
FILE: Finance Secretary Carlos Dominguez III holds a press conference at the Impact Challenger in Nonthaburi, Thailand on November 4, 2019. ALBERT ALCAIN/PRESIDENTIAL PHOTO
MANILA – The government’s spending plan remains intact despite the decision to delay by a month the deadline of income tax return (ITR) filing and payment to May 15 after Luzon was placed under an enhanced community quarantine.
“No impact,” Finance Secretary Carlos Dominguez III told journalists in a Viber message Thursday.
This year’s expenditure program amounts to PHP4.1 trillion.
Department of Budget and Management (DBM) data show that as of last February 29, about PHP3.172 trillion, or 77.4 percent of this year’s expenditure program, has been released.
Of the total funds released, PHP1.917 trillion has been earmarked for the various government agencies and special purpose funds under the national budget; PHP1.235 trillion for automatic appropriations, such as retirement and life insurance premiums, internal revenue allotment, interest payments, and net lending; and PHP19.133 billion for other releases, such as continuing appropriations from last year.
The remaining unreleased funds amount to about PHP927.538 billion, the same data show.
Budget Secretary Wendel Avisado told the Philippine News Agency (PNA) on Wednesday that “everything is normal” even after Luzon was placed under quarantine.
The quarantine, to last until April 12, aims to contain the further rise in coronavirus disease 2019 (Covid-19) cases by limiting people’s movement outside their homes.
“Nothing is disrupted in DBM’s operations. Delays will only happen when requirements are not complied with and submitted on time,” Avisado said.
The Department of Finance on Thursday said the extension of the ITR filing and payment deadline is projected to result in a shortfall in government revenues by about PHP145 billion which, however, may be offset by additional borrowings.
In a reply to questions from PNA, National Treasurer Rosalia de Leon said the Bureau of the Treasury (BTr) “will have additional borrowings” to help counter the impact of the ITR filing and payment deadline extension on government finances.
Asked if the borrowings would be sourced locally, such as through the issuance of treasury bond (T-bond), treasury bills (T-bills), or retail bonds, or from external sources through foreign-currency-denominated bonds, de Leon said, “Looking at alternatives.”
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