October Budget Deficit Reaches P21B

By CHINO S. LEYCO
December 1, 2011, 12:10am

MANILA, Philippines — Amid calls for higher public spending, the Aquino government’s budget deficit doubled in October this year, but the first 10-month fiscal gap figure remains well below against the full-year ceiling, data from the Department of Finance (DoF) showed.

In a statement, Finance Secretary Cesar V. Purisima announced yesterday that the government’s budget deficit reached P21.257 billion in October, higher by 102 percent compared with P10.514 billion incurred in the same month last year.

In January to October, the government’s budget deficit amounted to P74.251 billion, significantly lower by 72 percent compared with P270.302 billion in the same period last year.

The government’s end-October fiscal position was not even half of this year’s budget deficit program of P300 billion.

“The Aquino administration’s fiscal performance remained strong during the first 10-months of the year,” Purisima said. “The [government’s] serious and consistent implementation of tax administrative measures coupled with quality spending is continuously delivering results.”

“Moving forward, we are committed to further improve on our efforts to drive the positive fiscal momentum,” he added.

At end-October, Purisima said the government’s revenue collections continued to improve as expenditures were ramped up to boost growth and shield the Philippine economy from the present global uncertainties.

The government earlier reported the unexpected slowed economy in the third-quarter, registering 3.2 percent growth, which was weaker than the 4.3 percent expected by economists and just a shade higher than a revised 3.1 percent growth in the second quarter.

“Netting out interest payments, the government continued to operate under a primary surplus of P160.896 billion from January to October, a turnaround from last year’s P11.768-billion primary deficit,” Purisima said.

In the first 10-months, total revenue collections grew 13 percent to P1.121 trillion from P993.219 billion in the same period last year.

Meanwhile, Budget and Management Secretary Florencio B. Abad said that total disbursements in October reached P125.2 billion, which was 14.8 percent higher compared with P109 billion in the same month last year.

“Aside from posting the third highest magnitude of monthly disbursements this year, the government’s disbursement performance in October was also closest to target, being less than 5 percent below it,” Abad said.

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