PH improves 9-mo revenue collection effort to 14.7%
MANILA, Philippines - The Philippines' revenue collection effort -- a measure of collection efficiencies vis-a-vis the economy's growth -- improved to 14.7% in the January-to-September period from 14.5% a year ago
This figure, released by the Department of Finance, is an indicator of how well the government is doing in terms of revenue collection, relative to what could be expected given the economy’s potential.
Credit rating agencies, good governance advocates and economists closely watch this performance indicator in assessing the health of the Philippine economy.
Finance Secretary Cesar Purisima cited the government's "prudent fiscal management," highlighting a deficit-to-GDP ratio of only 1.4%, way healthier than the over 100% ratios of rich but troubled countries, including the United States and Greece.
For full year 2012, the government is eyeing a budget deficit ceiling of P279 billion or 2.6% of GDP.
Latest data showed the national government incurred a budget deficit of P9.674 billion in October, bringing the end-October budget deficit to only P115.736 billion.
The government’s tax effort also increased to 13.1% as of end-September, higher than the 12.7% recorded a year ago.
“This is driven by the 0.4% improvement in the BIR’s revenue-to-gross domestic product (GDP) ratio, now at 10.2%,” Purisima said.
In January to October, the government’s revenues increased by 11.8% to P1.253 trillion from P1.121 trillion a year ago.
Spending, on the other hand, accelerated by 14.5% to P1.369 trillion. - Rappler.com