Gov’t trims budget gap to P9.7 B in Feb

MANILA, Philippines - The country’s budget deficit narrowed in February as state revenue growth surpassed a moderate increase in spending, the Department of Finance reported yesterday.

The government recorded a budget deficit of P9.7 billion in February, 17 percent lower than the fiscal gap recorded a year ago.

 The latest data reflects the continued improvement in the country’s finances and brings the fiscal gap for the first two months of the year to P43.9 billion.

Revenues climbed seven percent to P120.3 billion in February, faster than the five percent growth rate in total spending, which amounted to P130 billion.

Excluding interest payments, the country continued to register a primary surplus of P6.1 billion in February, bringing the year-to-date surplus to P28.4 billion.

Of the P120.3 billion in revenues, 89 percent or P106.7 billion accounted for tax collections while the balance of P13.4 billion came from non-tax sources.

Collections by the Bureau of Internal Revenue (BIR) rose five percent to P78.4 billion. 

For the period January to February, BIR collections reached P182.5 billion, eight percent more than what it collected during the two-month period a year ago.

The Bureau of Customs continued to see double-digit growth rates with collections  expanding by 22 percent to P27.4 billion in February. 

This brings year-to-date collections to P57.2 billion or an increase of 22 percent year on year.

Finance Secretary Cesar Purisima said this marked the second time that the BOC’s monthly revenues grew above 20 percent and its fourth straight double-digit growth since the implementation of the Aquino administration’s Customs reform program.

“The President’s Customs Reform Program continues to unlock the growth potential of the Bureau of Customs, and is a continuing narrative of how good governance translates into good economics,” Purisima said.

The Bureau of the Treasury and other offices contributed P5.6 billion and P8.9 billion, for the month of February, respectively.

Total disbursements for the first two months of the year grew 11 percent to P313 billion while revenues rose to P269.1 billion from January to February.

Interest payments in February fell 11 percent to P15.9 billion given the state’s  prudent liability management efforts.

Purisima said good governance and anti-corruption remain to be the top priority of the Aquino administration.

“In just the first quarter of this year, the DOF’s anti-graft arm, the Revenue Integrity Protection Service, was able to secure eight suspensions and dismissals of BIR and BOC personnel found to be living beyond their means,” he said.

The Aquino administration continues its commitment to doing systemic reforms in its revenue generating agencies through transparency and accountability measures, Purisima said.