Gov’t wipes out deficit end-May

Photo by AFP

MANILA, Philippines – The government recorded a budget surplus of P11.8 billion ($269 million) in May, resulting in a surplus of P8.5 billion ($193.5 million) in the first 5 months, the Bureau of the Treasury announced on Thursday, June 26.

The 5-month surplus was “a turnaround” from the deficit position that the government had in the same period over the past 3 years, the agency noted.

In May 2013, the government recorded a deficit of P13.16 billion, while the deficit for the first 5 months was P42.84 billion.

The Department of Finance said the double-digit growth in revenue collections played a key role in wiping out the deficit.

“In the month of May, we saw total revenues, tax revenues, Bureau of Internal Revenue collections, and Bureau of Customs collections expanding at double-digit growth rates,” Finance Secretary Cesar Purisima said.

“This signifies the third straight month of double-digit year-on-year growth for total revenues and the fifth straight month for the BOC. If we keep up this performance, we are on track to fund more crucial infrastructure projects, especially the 3 new ones recently approved by the NEDA board,” Purisima added.

Revenue collections in May amounted to P172.2 billion, up 11.8% from P154.04 billion in May 2013. January-May collections jumped 12.2% to P795.1 billion from P708.37 billion last year.

Spending, on the other hand, grew 5% to P786.58 billion in the first 5 months from P751.21 billion in the same period of 2013.

In May alone, however, spending fell – part reason why the government registered a surplus.

Spending in May fell 4% to P160.45 billion from P167.2 billion last year despite reconstruction efforts in Typhoon Yolanda-hit areas. – Rappler.com