Public sector deficit down to P7.4B in 9 mos

The public sector has continued to improve its financial condition as it posted a lower than expected deficit of P7.412 billion in the first nine months of 2006.

According to the Department of Finance (DOF), the January to September consolidated cash balance of P7.412 billion accounted for only 0.2 percent of gross domestic product (GDP). Government estimates pegged the total deficit for 2006 at P106.77 billion which is equivalent to 2.4 percent of GDP.

The nine-month cash balance was almost 90 percent higher than the P71.221 billion recorded in the same period in 2005.

In a statement, DOF Secretary Margarito Teves credited the healthier financial position to lower borrowing requirements and good performance of government owned and controlled corporations (GOCCs).

The P76.9 billion public sector borrowing requirement (PSBR) was P86.1 billion lower than the P163-billion target. It was also better than the previous year’s P146.11 billion.

Meanwhile, the combined deficit of the National Government and the 14 monitored government corporations stood at P79.5 billion, P78.5 billion lower than target.

On the other hand, the Government Service and Insurance System (GSIS), the Social Security System (SSS) and Philhealth continued to perform favorably and had a combined surplus of P42 billion. The state pension funds were able

to improve their collections thereby receiving higher member contributions.

The local government units (LGUs) likewise performed above expectations with a cash balance of P27.8 billion.

 A P9.8 billion deficit was recorded by the Bangko Sentral ng Pilipinas in the third quarter as a result of the peso appreciation and dividends to the National Government.