News briefs that matter

I received my latest copy of IDEA’s NewsBriefs, a regular digest produced by the Institute for Development and Econometric Analysis, Inc. (IDEA) to highlight the most recent national and international economic events. The following are excerpts from said publication reprinted here to share some interesting news and figures pertaining to fiscal, monetary, corporate and labor sectors. I am sharing them to you my dear readers for these news really matters.

On fiscal sector, it was reported that the national government named P80 billion worth of assets for sale next year to aid the realization of the targeted balance budget. According to reports, Finance Secretary Margarito B. Teves disclosed that the government plans to sell its stakes in San Miguel Corporation, Manila Electric Co., Philippine National Oil Co.-Exploration Corp., Food Terminal Inc., the New Bilibid Prison Property, and the Fujimi property in Japan.

Furthermore it was disclosed, “that for the first nine months, remittances of state-run firms to government stood at P8.84 billion. It was led by the Bangko Sentral ng Pilipinas and the Philippine National Oil Co., each with P2.2 billion contributions as of end-September. The Philippine Ports Authority followed closely behind with P1.37 billion. According to the Bureau of Treasury, interest payments for the nine months to September was lower than planned by P23.9 billion to P222.7 billion due to low interest payments. As of end-September, government deficit was seen at P40 billion, below that set for the period. The positive performance was attributed to the P38.7 billion drop in government spending for the period.”

Likewise, per same report, “the Department of Finance released reports showed a better-than-expected budget deficit of P14.5 billion last month due to robust revenue collection by the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC). Reports showed that the BIR accumulated P48.9 billion in September, higher by P500 million than planned. The BOC, meanwhile, had collected 19.4 billion in the same month, P415 million greater than the target for the month”.

Then on the trade sector, IDEA revealed that “despite posted deficit of $95 million last month, most likely caused by import growth and higher debt payments, balance of payments position remained in surplus at $6.7 billion as of end-September. Central bank’s Department of Economic Statistics Director Iluminada Sicat added that, despite the absence of recent import data, historical data showed imports rise the quarter before Christmas.

Lastly, on the corporate sector, “a Supreme Court ruling instructed the Bureau of Internal Revenue to refund P107.65 million to Manila Electric Co. due to overpaid income tax. A BusinessWorld report showed that the figure was based on the said obligations sourced from 1987 to1988”.

Incidentally, the Chairman of the Institute for Development and Econometric Analysis, Inc. (IDEA) is Dr. Cayetano W. Paderanga Jr., who is also CIBI Information’s President/CEO.

(Mr. Ed F. Limtingco can be reached at 0917-7220521 or at [email protected])