By JIMMY CALAPATI

The national government posted a budget deficit of P18 billion during the first half of the year, less than half of the expected deficit of P41 billion for the period.

Finance Secretary Margarito Teves yesterday said that higher than expected revenues plus less expenditures helped narrow down the deficit.

Revenues rose since prices had risen, bloating the base for the expanded value added tax. Likewise higher cost of imported materials enabled customs to collect more duties.

As of end-June, total revenues amounted to P570 billion, exceeding the goal by P8.3 billion.

It grew by 12 percent, comparable to the current inflation rate, compared to the period last year of P510.3 billion.

The lower than expected deficit can also be attributed to the P8.3 billion excess over the first semester revenue program of P561.7 billion and P14.7 billion lower spending, the Dept. of Finance said.

Of the total revenues, the Bureau of Internal Revenue collected P389.8 billion, up 16 percent from last year's P334.7 billion.

This is also higher by P10.7 billion against its target.

The Bureau of Customs generated P117 billion, surpassing its goal by around P600 million.

For the same period last year, BOC collected only a total of P92.2 billion.

Bureau of Treasury income reached P29.5 billion, lower by P2.2 billion compared to the program due to lower dividends and income from investments.

This is lower by 11.5 percent compared to its income last year of P33.3 percent Other offices, including privatization contributed P33.7 billion to overall revenue collection, below the program by about P900 million and 32.7 percent lower to its actual collections for the same period last year of P50.1 billion.

Expenditures, on the other hand, reached P588 billion, still short by P14.7 billion against the first semester program.

This is higher by 7 percent than the comparable disbursements in 2007 of P551.3 billion.

For the month of June alone, the government registered a surplus of P769 million, slightly lower than the P782 million budget surplus posted during the same month last year.

Total revenues for June amounted to P87.6 billion, up 12.7 percent from last year, while expenditures hit P86.8 billion, higher by 12.9 percent compared to June last year.

"We are encouraged by the good performance of our main revenue generating agencies in the first half of the year," Teves said.