Gov’t finances improve in January

The government’s financing position in January showed a net payment of P2.4 billion—about 30 times smaller than the P64.7 billion recorded in the same month last year, according to the Bureau of the Treasury (BTr).

The issuance of global bonds, which translated to P66 billion in new borrowings, accounted for bulk of the debt incurred in January.

That same month, government financing showed a net outflow resulting from P82 billion in new foreign borrowings and P84.43 billion in payments to lenders.

The government’s financing position in January was an improvement from the net outflow of payments recorded in the same month of 2011, which covered P25.25 billion in fresh funds and P89.86 billion in payments to lenders.

Payments made in January included P1.53 billion for foreign loans and P82.9 billion for domestic debts. This was 6 percent less than what was paid in the comparative period last year, which covered P1.32 billion worth of overseas obligations and P88.64 billion in local loans.

Finance Secretary Cesar V. Purisima earlier reported that the government posted a budget deficit of P15.9 billion as disbursements continued to increase.

The January deficit was 30 percent less than the P49.3 billion posted in the same month of 2011.

The deficit was marked by an acceleration disbursements intended to boost economic growth, Purisima explained.

Also, the finance chief said that, with interest payments taken out, a primary surplus of P34.3 billion was posted in January as the government sustained its push for the consolidation of its financial obligations.

Total government revenues in January reached P126.35 billion—7 percent lower than the year-ago amount of P135.91 billion.

Purisima expressed confidence that growth in revenues could be as impressive as last year, when revenue growth hit its highest in a decade.

“Following a notable performance last year, the government looks at 2012 as an opportunity to continue with its fiscal consolidation process as it strives for higher, sustainable and more inclusive growth,” he said.

Expenditures reached P142.3 billion, or 16.2 percent higher than the P122.49 billion reported in January 2011.