Government posts lower CPSD in 3rd qtr

Reflecting its belt-tightening measures, the government posted a consolidated public sector deficit (CPSD) of P126.68 billion in the third quarter, lower than the programmed level of P130.69 billion.

Data from the Department of Finance (DOF) showed that the P126.68 billion CPSD is equivalent to just 4.9 percent of gross domestic product (GDP) instead of the 5.1 percent of GDP as targetted.

The CPSD includes the cash positions of the National Government, CB-Board of Liquidators, monitored government-owned-and-controlled corporations (GOCCs), Oil Price Stabilization Fund (OPSF), social security institutions (SSIs), Bangko Sentral ng Pilipinas (BSP), government financial institutions (GFIs) and local government units (LGUs).

As a result of the lower than programmed CPSD, the financing requirement of the monitored public sector (PSFR) for the period totaled only P151.63 billion instead of the programed level of P147.20 billion.

The PSFR is the minimum amount government borrows for the period to bankroll basic public service such as health, education and police protection at an adequate level.

The adjusted PFSR, which is one of the economic indicators being monitored by the international Monetary Fund (IMF) under the country’s post-program monitoring, at P153.3 bilion, was slightly higher than the programed P150.2 billion.

The adjusted PSFR does not include the accounts of the Oil Price Stabilization Fund (OPSF) and privatization.

The DOF said the lower deficit was due to the favorable National Government fiscal performance.

During the period, social security institutions (SSIs) such as the Social Security System and the Government Service Insurance System, and the BSP generated higher net cash inflows of P11.99 billion and P4.6 billion, respectively. – Rocel Felix