Fiscal surplus drops 72.6% in August on higher spending

By: Likha Cuevas-Miel, InterAksyon.com
September 26, 2012 2:39 PM

DOF chief Cesar Purisima

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MANILA - The Philippine government's budget surplus fell by 72.6 percent year-on-year to P2.523 billion last month, as spending picked up by 10.4 percent, the Department of Finance said on Wednesday.

In a statement, the DOF said the surplus in August resulted in a fiscal deficit of P71.208 billion for the first eight months, more than double last year's P34.493-billion.

The year-to-date deficit however remains below the P183.34-billion program for the first three quarters of this year.

“With this, the Philippines continues to be in a fiscal sweet spot, generating wide fiscal space to stimulate the economy and to spend on key development projects,” Finance Secretary Cesar Purisima said.

In August alone, the national government's revenues stood at P129.4 billion, with the Bureau of Internal Revenue contributing P96.756 billion, and the Bureau of Customs, P22.632 billion.

Along with less than P3 billion from other revenue-earning agencies, the government's eight-month revenues hit P1.013 trillion, or 11.1 percent higher than the P912.751 billion recorded in 2011.

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“The department is keen to see the passage of its revenue-generating legislative measures. The reform on excise taxes in tobacco and alcohol is one step closer to being enacted into law with the culmination of the Senate committee hearings. We expect the committee report to be finalized and sponsored for plenary debates and approval when session resumes in October,” said Purisima.

He said the DOF and the Department of Trade and Industry have reached an agreement how to push for the rationalization of fiscal incentives, which would further bolster revenues.

"And we hope to jointly endorse the draft bill to the Senate by mid-October. We are also working together with the Mining Industry Coordinating Council so that a draft legislation revising the fiscal regime on mining can be introduced in Congress at the soonest possible time,” Purisima added.

Accelerate rollout of key infra projects

Last month, the government spent P126.885 billion, or 10.4 percent more than in 2011, when expenditures stood at P114.928 billion. This led to a 14.5-percent uptick in spending for the first eight months to P1.084 trillion from P947.244 billion last year. This however was below the ceiling of P1.353 trillion for the first three quarters of 2012.

“These figures only prove the efforts of national government agencies to accelerate the rollout of key infrastructure projects to help boost the country’s viability as the next investment and tourism hub in the region,” Budget Secretary Florencio Abad said in a separate statement.

He said infrastructure and other capital outlays grew by 67.6 percent in August alone, and 65.1 percent during the eight-month period.

"Through reform mechanisms such as the Account Management Teams in key departments, the Aquino administration has been pushing for faster-yet-quality spending on priority social programs and projects,” Abad said.

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