January to September Fiscal Deficit at P31.1 billion

October 2014 Manila, Philippines – The National Government (NG) ran a P5.2 billion fiscal deficit in September after posting a surplus in August. The recorded September deficit is P13.4 billion lower compared to last year due to improved revenue collection by the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC). The cumulative budget shortfall of P31.1 billion for the first three quarters of 2014 is P70.2 billion lower from a year ago and well within the P235.5 billion program for the period.

Revenue Performance

Total revenue for the month amounted to P154.6 billion, reflecting 21% growth compared to the same month last year. Year-to-date collections of P1.4 trillion registered a 13% increment over comparable 2013 figures.

The Bureau of Customs (BOC) continued its double-digit growth with a 28% year-on-year increase in actual collections of P32.9 billion for September. The Custom Bureau has raised P265.8 billion in 2014, 18% better than last year but still 12% short of program.

The Bureau of Internal Revenue (BIR) collected P105.7 billion for the month, posting 23% growth over the same period in 2013 – its highest monthly year-on-year growth for the 2014. Total BIR collections from January to September has grown 11% year-on-year to P996.4 billion but falls 7% behind target for the period.

The Bureau of the Treasury (BTr) raised P5.6 billion in September, down 23% from a year ago, due to lower interest earned from investments and deposits. Nonetheless, cumulative BTr income from January to September still increased by 19% year-on-year, surpassing its target by 82% mostly due to higher dividend collections and interest income.

Collections from other offices grew by 25% to P10.4 billion in September. The year-to-date revenue of P81.5 billion shows a 7% improvement in collections over the same period last year and is 15% above program.

Expenditures

NG disbursements amounted to P159.8 billion in September, 9% or P13.8 billion higher over the same period in 2013. Meanwhile, year-to-date expenditures is 6% higher year-on-year at P1.5 trillion despite being 16% below budget.

As a part of expenditures, Interest payments (IP) for September declined by 1% year-on-year to P28.8 billion from P29.2 billion in the previous year. Total IP for the first nine months have remained relatively stable from last year but has managed to remain 7% below program.

Primary Surplus/ (Deficit)

Netting out IP from total expenditures, NG recorded a P23.6 billion primary surplus for the month of September contributing to a cumulative primary surplus of P226.3 billion thus far for 2014.