National government posts P80.9 billion budget surplus in April 2014

National government posts P80.9 billion budget surplus in April 2014

BOC records fourth straight month of double-digit growth

The National Government budget balance for April 2014 was at a surplus of P80.9 billion, more than double the surplus in the same period a year before, as a result of improved collection by revenue generating agencies. This brings the January-April 2014 budget balance at a deficit of P3.3 billion, well-within the program and an improvement from the P29.7 billion deficit in the previous year.

Netting out interest payments, the primary surplus in April was P94.3 billion or 55.8% higher than the surplus a year before.

“The month of April sustained the strong fiscal performance we experienced in the first quarter of the year,” Finance Secretary Cesar V. Purisima said.

“Revenues in the first quarter grew 9.4%, which is faster than the country’s Q1 GDP growth. We have also attained a tax revenue to GDP ratio of 12.4%, an increase from 12.0% in Q1 2013. We are striving to achieve our tax effort goal for the year to give us more fiscal headroom for productive spending.”

 

Revenue collections grow 18.1%, BTr income rises 391.3%

Total revenue collections amounted to P224.4 billion in April, an 18.1% rise from last year. This brought revenue collections for January to April to P622.86 billion, 12.4% higher than comparable figures in 2013.

We continue to reap the fruits of reforms at the Bureau of Customs – the Bureau posted its fourth straight month of double-digit growth by raking in P30.8 billion, a 13.4% year-on-year growth. Year-to-date, collections grew 22.2% to reach P117.3 billion.

The Bureau of Internal Revenue (BIR) collected P156.1 billion this April, a 4.8% increase from comparable 2013 figures. BIR revenues for January to April reached P420.8 billion, 7.1% higher than last year’s figures.

Total Bureau of Treasury income for the month amounted to P30.8 billion, exceeding its target by 721.4% and sharply rising 391.3% year-on-year.

 

January-April interest payments down to 18.6% of expenditures

Following the disbursement of a fourth of the budget in the first quarter of 2014, April expenditures decreased to P143.6 billion, 6.3% lower than comparable figures last year. Year-to-date disbursements were P626.1 billion, 7.2% higher than comparable figures in 2013.

Interest payments for the month were P13.4 billion, a 43.4% drop from figures in April of last year. This brings year-to-date interest payments to 18.6% of spending, an improvement from 20.9% a year ago.

 

More successes after WEF on East Asia

“During discussions at the well-received World Economic Forum on East Asia, the Philippines has been lauded as the next Asian miracle and possibly the next economic tiger. This recent news on our fiscal position is proof that we do have the potential for greater growth,” Purisima said.

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NG Registers P80.9 Billion Fiscal Surplus in April 2014 January to April Fiscal Deficit at P3.3 Billion

NG Registers P80.9 Billion Fiscal Surplus in April 2014 

January to April Fiscal Deficit at P3.3 Billion

 

 

26 May 2014 Manila, Philippines – Higher National Government (NG) revenue collections resulted in an P80.9 billion budget surplus for April 2014, more than doubling the P36.8 billion surplus registered in the same month in 2013. This brings the budget deficit for the January-April period to P3.3 billion, outperforming the P29.7 billion deficit from a year ago.

Revenue Performance

Revenue collections for April reached P224.4 billion, representing an 18% increment over the P190.0 billion collection last year. The significant increase mostly came from non-tax sources comprising 71% of the incremental revenue with the remaining 29% coming from the Bureau of Internal Revenue (BIR), the Bureau of Customs (BOC) and tax collections of other government offices. Year-to-date revenue collection stands at P622.9 billion, 12% or P68.5 billion higher than similar collections last year.

For its part, the BIR collected P156.1 billion in April, representing a 5% collection growth over April 2013 figures. Total BIR collections as of end-April 2014amounted to P420.8 billion, a P27.8 billion or 7% expansion compared to 2013.

The BOC sustained its double-digit collection growth with a 13% performance gain in April. BOC was able to collect P30.8 billion for the month, bringing year-to-date revenue collections to P117.3 billion or 22% higher compared with the same period a year ago.

The Bureau of the Treasury(BTr) raised P30.8 billion in April as dividends reached P18.5 billion. Total BTr income for April is five times the amount in 2013, bringing the Jan-Apr 2014 collections to P51.8 billion while approaching 92% of the revenue target for 2014. Actual BTr income amounted to P10.7 billion with BSF income of P9.0 billion – triple the figures for April last year.

Other offices contributed P6.7 billion in April, 11% lower than the P7.5 billion actual collections for the period last year. Year-to-date revenue of P33.0 billion similarly shows a 3% decline over the comparable figures in 2013.

 

Expenditures

Actual disbursements amounted to P143.6 billion for April, down by 6% or P9.6 billion year-on-year. Meanwhile year-to-date expenditures amounting to P626.1 billion is 7% higher over comparable levels in 2013. Interest payments has gone down by 43% year-on-year falling P10.3 billion mainly due to the timing of monthly interest payments. Total interest payments as of end-April is at P116.5 billion which is 4% better than last year. As a percentage of expenditures, interest payments continued to show improvements over Jan-Apr as it accounted for 19% of disbursements compared with 21% a year ago.

Primary Surplus/ (Deficit)

Netting out interest payments, primary surplus for April was recorded at P94.3 billion, which is 56% or P33.8billion higher than comparable figures last year. This brings the primary balance for the first four months of the year to a surplus of P113.3 billion.

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DOF slams TRO from Makati RTC overturning SC decision in PNCC net income remittance

DOF slams TRO from Makati RTC overturning SC decision

in PNCC net income remittance

The Department of Finance (DOF) denounces the issuance of a Writ of Preliminary Injunction by the Regional Trial Court of Makati City, Branch 132. The injunction prohibits the implementation of the Interim Rules and Guidelines created by the Toll Regulatory Board (TRB) and the Commission on Audit (COA) and contradicts earlier decisions of the Supreme Court.

In the writ dated May 9, 2014, Judge Rommel O. Baybay directed the Manila North Tollways Corporation (MNTC), Citra Metro Manila Tollways Corporation (CMMTC), South Luzon Tollways Corporation (SLTC), and Manila Toll Expressway Systems, Inc. (MATES) “to forward the entire amounts to be remitted by them” under their respective Supplemental Toll Operation Agreements (STOAs) to the Philippine National Construction Corp. (PNCC).

Issued in 2012, the Interim Rules and Guidelines set the formula for the net income remittable by PNCC to the national government. These rules were issued pursuant to the rulings of the Supreme Court in Francisco v. TRB (Francisco Case) and Strategic Alliance Devt. Corp. v. Radstock Securities, Ltd. (Radstock Case).

In these decisions, the Supreme Court held that after the expiration of PNCC’s franchise, the toll fees collected by PNCC are public funds that “are merely held in trust by PNCC for the National Government.”

The SC also ruled that PNCC’s “very share/participation in the JVAs and the STOAs, inclusive of its percentage share in the toll fees collected by the JV companies currently operating the tollways shall likewise automatically accrue to the Government.”

Last year, the Bureau of Treasury collected almost Php800 million worth of remittances from MNTC, TMC, SLTC, and CMMTC. This year, SLTC and MNTC were about to declare dividends when the Injunction Order was issued.

“The Baybay Injunction Order provokes the public to question the integrity of our courts. I am appalled that Judge Baybay has the gall to contradict the decisions of the Supreme Court on these issues,” Finance Secretary Cesar V. Purisima said.

It may be recalled that the Supreme Court had ruled in 2009 and 2010 that PNCC’s toll assets and facilities, including the net income derived from these toll assets and PNCC’s very share/participation in the various joint venture agreements were automatically turned over to the National Government upon the expiration of PNCC’s franchise on 1 May 2007. Thus the Supreme Court directed the TRB, with the assistance of COA, to prepare and finalize the implementing rules and guidelines for determining the net income remittable by PNCC to the national government.

In August 2013, Mr. Rodolfo Cuenca, a close friend and confidant of former dictator Ferdinand Marcos and a minority shareholder of PNCC, filed a case against the TRB, COA, PNCC, MNTC, CMMTC, SLTC, and MATES before the RTC of Makati.

In his suit, Mr. Cuenca prayed for, among others, the issuance of a preliminary injunction enjoining and restraining TRB and PNCC from implementing the Interim Rules and Guidelines dated March 22, 2012 and directing MNTC, CMMTC, SLTC, and MATES to forward entire amounts to be remitted by them under their respective STOAs to PNCC.

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Fake goods trader faces smuggling raps

Fake goods trader faces smuggling raps

The Bureau of Customs filed cases related to smuggling of counterfeit goods worth over P55-Million against Rizaldy Valencia, owner and proprietor or Clurky Trading; and the firm’s customs broker, Elizar Lopez.

The fake goods, which were packed inside three (3) container vans that arrived at the Manila International Container Port last January 2, 2014 from China, included fake Levi’s shirts, Adidas AG jogging pants, housing for Sony PSP and Aeropostale shirts. These were declared as unbranded “Cotton Fabrics, Female Trousers, Pants, Shorts, Men’s T-Shirt, Ladies Sandals, Shoes, Handbags, Phone Cases, Muffler, Ladies Swimwear.” Lopez and Valencia also failed to declare the other contents of their shipments in their import entry documents. The undeclared items include Diesel men’s undergarments, Renrene Hair Dye, Powder Face Mask, Paraffin wax, mobile phone chargers and other consumer electronic products.

Lopez and Valencia face charges of violating Sections 3601 and 3602 of the Tariff and Customs Code of the Philippines, in relation to Section 166 of Republic Act (RA) 8293, (Intellectual Property Code of the Philippines) for the unlawful importation of goods bearing faked brands and trade names; and Section 172 of the Revised Penal Code for falsifying public documents.

“It is our duty to protect our consumers and our legitimate businesses from the harmful effects of fake products. Fake goods are damaging to business and investment opportunities and pose a serious threat to public health and safety since these counterfeit products are not subject to safety checks,” said Customs Commissioner John P. Sevilla.

Last month, the United States Trade Representative removed the Philippines from its blacklist of countries that do not properly protect U.S. copyrights and patents on the back of the passage and implementation of laws to better protect intellectual property rights.

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SUMMARY OF THE CASES

 

CASE TITLE CLURKY TRADING

BOC vs. RIZALDY H. VALENCIA, et.al.

RESPONDENTS 1.         RIZALDY H. VALENCIA, owner/proprietor of CLURKY TRADING, with office at Ground Floor ESL Building, Anda Circle, Port Area, Manila

2.         ELIZAR L. LOPEZ, licensed customs broker of CLURKY TRADING, with addresses at 9644 Dona Cipriana St., Gat-M. Vitalez, Paranaque City and Lapu-Lapu City

VIOLATIONS 1.         Sections 3601 (unlawful importation) and 3602 (fraudulent practice against customs revenue) in relation to Sections 101 and 2503 of the Tariff and Customs Code of the Philippines (TCCP), as amended

2.         Section 166 (infringement) of Republic Act 8293 (Intellectual Property Code)

3.         Article 172 in relation to Article 171 and Article 183 of the Revised Penal Code of the Philippines

GOODS Three (3) 40-foot container vans declared as “Cotton Fabrics, Female Trousers, Pants, Shorts, Men’s T-Shirt, Ladies Sandals, Shoes, Handbags, Phone Cases, Muffler, Ladies Swimwear” but found to contain various counterfeit Levi’s shirts, Adidas AG jogging pants, Sony PSP housing and Aeropostale shirts; as well as various undeclared items such as Diesel men’s briefs, Renrene Hair Dye, Powder Face Mask, etc.
DATE & PORT OF ARRIVAL Jan 2, 2014 ; Manila International Container Port
VALUE P55-Million
PORT OF ORIGIN China

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Statement of Finance Secretary Cesar V. Purisima on the Q1 2014 5.7% GDP growth

Statement of Finance Secretary Cesar V. Purisima

on the Q1 2014 5.7% GDP growth

“The Philippines grew 5.7% in the first quarter of 2014 coming from a year of major disasters. Despite this, the Philippines ranked as the third fastest growing economy in Asia, after China (7.4%) and Malaysia (6.2%).

“The Philippines is on the right path with 9 consecutive quarters of above 5.5% GDP growth, bringing President Aquino’s average quarterly GDP growth rate to 6%. Under President Aquino’s leadership, manufacturing has increased by an average of 6.9%. Similarly, exports have also increased by an average of 5.5%, and fixed capital formation also increased by an average of 8.8%.

“This announcement comes a week after the Philippines successfully hosted regional fora such as the World Economic Forum on East Asia and the ASEAN Finance Ministers’ Investors Seminar that showed the regional and global economy is now setting its sights on the Philippines.

“We have also been able to maintain high growth while keeping inflation within policy levels at 4.1% in the first quarter of 2014. On the fiscal side, government expenditures have increased by 12% over the same period last year supported by strong growth in revenue collections of 9% in the same period, with particularly strong performance in the Bureau of Customs registering 26% year on year growth for the first quarter. Strong collections result from the good governance reforms of President Aquino, building upon the virtuous cycle of fiscal space for productive investments that will further enhance economic growth and social development in the country.

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