Business World
Gov’t confident of keeping 2010 deficit under P325-billion cap
A COMBINATION of higher revenues and "judicious" spending resulted in budget surplus last November and a narrower year-to-date deficit, the government yesterday reported.
Officials announced a surplus of P482 million for last month, a result that trimmed the 11-month deficit tally to P268.9 billion from October’s P270.3 billion. The figure was also well below the P300.2 billion programmed for the period.
"With the positive developments in both revenue and disbursement fronts ... we will most likely achieve our full-year deficit target of P325 billion," Budget Secretary Florencio B. Abad told a briefing.
A surplus was last reported in August.
Disbursements totaled P111.1 billion in November, lower than the P133.3-billion expense cap. This brought total expenses for the 11-month period to P1.374 trillion, below the programmed P1.466 trillion.
Excluding interest payments, the government posted a primary surplus of P16.9 billion, almost triple the P4.3 billion in savings a year ago. This translated to a year-to-date primary surplus of P5.2 billion, a reversal of the P12.4-billion primary deficit last year.
Mr. Abad said the government saved from lower infrastructure and capital spending due to frontloading in the first half, deferment in the subsidy release for indigents under a Philippine Health Insurance Corp. program, deferment in the buying of blank passport booklets and a shelved Education department project.
Savings were also realized from tighter release of government workers’ salary and benefits, decrease in net lending to government corporations and lower interest payments due to strong peso.
The savings, however, are being utilized this month as the government begins to frontload allocations for next year’s projects.
"Even within December we [are starting] to frontload," Mr. Abad said.
"If we cannot finish it, we can carry over the savings to next year. We [should] take advantage of the good weather months in the first half [of 2011] so by the time typhoons arrive, we would have been able to do a major part of our projects," he added.
The frontloading, the budget chief said, includes allocations for the Public Works, Health, Education, Agriculture, Transportation, and Social Welfare departments, agencies that have "the most infrastructure [and] cash subsidy programs."
Mr. Abad declined to state the amount being frontloaded, but Budget data show the government has a remaining P72.2 billion in discretionary funds it can utilize this month or carry over to 2011. The amount is part of the P135.9 billion in programmed spending for December that would complete the government’s P1.540-trillion budget program for the year.
Mr. Abad has authorized a total of P1.404 trillion in releases as of November but only P1.374 trillion has been actually released.
Revenues, meanwhile, reached P1.104 trillion in the 11 months to November, 8.1% higher than last year’s P1.021 trillion.
Monthly collections of the bureaus of Internal Revenue (BIR) and Customs (BoC) rose by 18% and 14%, respectively, compared to last year despite both missing their November targets.
The BIR collected P82.43 billion last month, below a P86.03-billion target but up from the P70 billion netted a year ago. Its take as of November reached P753.3 billion, behind the P783.03-billion goal for the period.
The BoC, meanwhile, collected P20 billion last month, also below its P26.73-billion target. It was, however, an improvement from last year’s P17.5 billion. January to November collections totalled P233.5 billion, way behind a P263.49-billion goal.
The BIR and the BoC have said they would be unable to meet their respective full-year targets of P860.4 billion and P280 billion.
Finance Secretary Cesar V. Purisima, in a statement, said the government’s fiscal approach was beginning to bear fruit.
"We are confident that the succeeding months will bring in higher revenue collections as our crusade against tax evaders, smugglers, and corrupt revenue officials gains traction and our taxpayers become increasingly convinced that it is not business as usual," Mr. Purisima said.
Despite the November surplus, Mr. Abad said the deficit would likely not fall below last year’s record P298.5 billion.
"I don’t think so," he said when asked about the possibility.
Victor A. Abola, an economist at the University of the Asia and the Pacific, said the 2010 deficit could end up "not less than P315 billion". -- P. P. Magtulis
No comments:
Post a Comment