Gov’t posted P5.2-B budget deficit in September

MANILA, Philippines—The Department of Finance (DOF) on Wednesday reported that the government posted a budget deficit of P5.2 billion last September—a reversal of the surplus recorded in August.

In the first nine months of the year, the budget stood at a deficit of P31.1 billion, which the DOF said was still well within the program set for the period. The government earlier projected that the budget deficit would hit P266.246 billion by yearend.

In a statement, Finance Secretary Cesar V. Purisima noted that the deficit recorded in September was narrower than that of a year ago due to “fast-paced year-on-year growth of revenue collections.”

The primary balance for the month “was at a surplus of P23.6 billion, wider than the year-ago figure of P10.6 billion,” Purisima said. “As of end-September 2014, the primary balance was also recorded at a surplus of P226.3 billion and wider than comparable figures last year.”

Revenue collections reached P154.7 billion last September—up 21.4 percent year-on-year. It was also 1.8 percent higher than the target set for the month.

At end-September, combined collections of the bureaus of Internal Revenue, Customs and Treasury totaled P1.425 trillion—12.5 percent higher year-on-year.

On the expenditure side, the government’s disbursements totaled P159.8 billion last month—9.5 percent higher year-on-year. From January to September, total expenditures reached P1.456 trillion.

Although the end-September expenditures were 6-percent higher year-on-year, the figure was 16 percent below the program set. That month, interest payments went down by 1 percent year-on-year to P28.8 billion. As a result, interest payments in the first nine months were 7 percent below the program set.

Net of interest payments, government expenditures stood at a primary surplus of P23.6 billion in September, bringing the nine-month surplus to P226.3 billion.