Deficit nearly doubles in Jan on Yolanda spending

MANILA, Philippines – The Aquino government’s budget deficit in January nearly doubled from the level a year ago on increased spending for rehabilitation works in areas ravaged by Typhoon Yolanda (Haiyan).

On Thursday, March 27, the Department of Finance (DOF) said the January deficit amounted to P34.22 billion, up 75% from last year’s P19.53 billion.

DOF said the shortfall was a result of ramped-up spending for the rehabilitation of provinces that were hit by Yolanda, as well as those affected by other major disasters like the Bohol earthquake last year.

Government spending in January reached P183.04 billion, 16% higher than the P157.9 billion disbursed in the same month of 2013.

Revenues, on the other hand, stood at P148.82 billion, an 8% increase from the P138.37 billion recorded a year ago.

The bureaus of Internal Revenue and Customs performed strongly in January, posting 10% and 21% increases in collections, respectively.

“The Philippines’ fiscal performance figures in recent years are a manifestation of restored normalcy in meeting the expectations of the Development Budget Coordination Committee (DBCC),” Finance Secretary Cesar Purisima said.

Purisima said that since 2010, budget deficits were consistently well within the assumptions of the DBCC.

Last year, the government incurred a deficit equivalent to 1.4% of the country’s gross domestic product, below the 2% ceiling set by the Aquino government.

It was a significant improvement from the 3.9% recorded during the administration of former President and now Pampanga Representative Gloria Macapagal-Arroyo in 2009.

“Through even more aggressive and prudent efforts in stamping out corruption, widening our tax base, and managing our liabilities, I believe this newfound confidence in the Philippines’ fiscal performance is something that we can sustain,” Purisima said. – Rappler.com