Gov’t reduces deficit to P9.7B in Feb

MANILA, Philippines – The government incurred a budget deficit of P9.7 billion in February, bringing the total deficit for the first 2 months of the year to P43.9 billion.

The February figure was down 17% from what was recorded a year ago, the Department of Finance said in a statement on Monday, April 14.

Finance Secretary Cesar Purisima said the deficit narrowed as government revenues grew faster than expenditures.

Revenue collections in February reached P120.3 billion, up 7% year on year. Tax collections accounted for P106.7 billion or 89% of the amount. For the first 2 months, revenues also rose 7% to P250.7 billion.

Both the Bureau of Internal Revenue (BIR) and Bureau of Customs posted positive growths in collections.

BIR collections stood at P78.4 billion in February, up 5%, while Customs’ were at P27.4 billion, a 22% jump.

Purisima said Customs recorded “its 2nd monthly growth above 20% and its 4th straight double-digit growth since the President’s Customs Reform Program normalized in November.”

With the blessing of President Benigno Aquino III, Customs implemented a number of reforms such as a bureau-wide reshuffling, among others. Customs was mostly in transition last year as new top-level officials were appointed, workers were ordered to return to their mother units and some collectors were transferred to the Department of Finance.

Expenditures

Government disbursements totaled P130 billion in February, a 5% increase from the 2013 figure.

Combined expenditures for the first 2 months amounted to P313 billion, an 11% increase from the same period a year ago as the government implements rehabilitation works in Typhoon Yolanda-ravaged areas. – Rappler.com