MANILA, Philippines - The government's fiscal deficit ballooned to P34.2 billion in January, 75 percent higher than the P19.5 billion posted in the same period last year, the Department of Finance (DOF) reported on Thursday.
The state agency said the rise in deficit came after the government hiked its reconstruction and rehabilitation spending following recent natural disasters.
Without interest payments, the government could have posted a P22.2-billion surplus in January. Interest payments in January represented 31 percent of spending, an improvement from 35 percent recorded in January 2013.
“The Philippines’ fiscal performance figures in recent years are a manifestation of restored normalcy in meeting the expectations of the Development Budget Coordination Committee,†Finance Secretary Purisima said in a statement.
DOF said since 2010, the budget deficits were always well within the assumptions of the Development Budget Coordination Committee, the main body tasked to recommend government expenditures and the ceiling of government spending.
"Last year, the government has gone significantly below the 2-percent ceiling set by President Aquino and achieved a 1.4 percent deficit. These are vast improvements from the 3.9 percent fiscal gap incurred in 2009, which soared above the official target," the state agency said.
DOF said over the past four years, the government has succeeded in achieving a downward trend in the share of the government's debt to gross domestic product over the past four years.
“Through even more aggressive and prudent efforts in stamping out corruption, widening our tax base, and managing our liabilities, I believe this newfound confidence in the Philippines’ fiscal performance is something that we can sustain,†Purisima said.