Gov’t posts P80.9B budget surplus in April
FILE PHOTO
MANILA, Philippines–A record-high budget surplus was recorded in April, nearly wiping out the deficit since the start of the year, as government spending slumped despite the need for extensive reconstruction efforts in typhoon-ravaged Visayas.
Although collections by both the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) fell short of their targets, state spending in April contracted, resulting in the record surplus that was more than double last year’s.
The Department of Finance (DOF) yesterday said the government’s budget surplus reached P80.9 billion in April. This trimmed the government’s deficit since January to only P3.3 billion, significantly lower than last year’s P29.7-billion shortfall.
This came as disbursements fell 6 percent year-on-year to P143.6 billion in April. For the four-month period, spending was up 7 percent to P626.1 billion.
Interest payments, which were down 43 percent, accounted for 19 percent of the government’s spending in four months, the DOF said. This was better than last year’s debt service burden of 21 percent.
Revenue collections for April reached P224.4 billion, representing an 18-percent increase year-on-year. The government’s main money maker, the BIR, saw tax collections rise 5 percent to P156.1 billion from a year ago. The customs bureau performed better, with revenues increasing 13 percent in April to P30.8 billion.
The Bureau of the Treasury raised P30.8 billion in April as dividends reached P18.5 billion. Total Treasury income for April was five times the amount in 2013, bringing the January-April 2014 collections to P51.8 billion while approaching 92 percent of the revenue target for 2014.
Despite falling short of spending goals, Finance Secretary Cesar V. Purisima remained confident, noting that the surplus in April gave the government more room to boost spending in the coming months to boost economic growth.
Originally posted at 4:36 pm | Wednesday, June 4, 2014
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