GOVERNMENT SPENDING beyond the budget caused the public sector to incur a consolidated deficit of P47.3 billion in the first quarter, according to Finance Secretary Margarito B. Teves.

Teves said in a statement that the amount is equivalent to 2.7 percent of gross domestic product (GDP), or the total value of goods and serviced produced within the country during that period.

Even then, the amount was just about half of the P87.02-billion deficit program for the public sector, which was equivalent to 5 percent of GDP.

Also, the consolidated public sector deficit from January to March was 161-percent higher than the P18.08 billion posted in the same period of 2008, which was 1.1 percent of GDP.

The entire public sector refers to the national government, local government units (LGUs), government financial institutions, social security institutions (SSIs) and state-run firms.

SSIs include the Government Service Insurance System, Social Security System and the Philippine Health Insurance Corp. (PhilHealth).

“The substantial increase in the public sector’s deficit was largely due to the higher-than-programmed deficit of the national government,” Teves said.

In the first quarter, the government spent P119.7 billion more than its budget, overshooting the deficit target of P110.1 billion and more than double the P51.6 billion incurred in the yearago period.

“However, this was partially offset by the improved performance of the 14 monitored nonfinancial government corporations (MNFGCs), SSIs and local government units.

The 14 MNFGCs include the National Power Corp. (including National Transmission Co. and Power Sector Assets and Liabilities Management Corp.), Philippine National Oil Co., Metropolitan Waterworks & Sewerage System, National Irrigation Administration, the National Development Co., Light Rail Transit Authority, Local Water Utilities Administration, National Electrification Administration, National Housing Authority, Philippine National Railways, Philippines Ports Authority, National Food Authority, Philippine Economic Zone Authority, and the Home Guaranty Corp.

The MNFGCs posted a surplus of P14.09 billion compared to the P12.77 billion during the same period last year, which was attributed to higher operating income during the period.

SSIs also reported a surplus of P20.4 billion, higher than last year’s P14.41 billion, due to higher investment income on government securities.