The Secretary of Finance today announced that in 2012 the overall deficit of the public sector was P163.3 billion, equivalent to 1.5% of GDP. This amount is P11.8 billion lower than what was registered last year. The ratio was 1.8% in 2011.
The public sector deficit was also P70.7 billion lower than the program. The improvement was mainly due the improved performance of the national government, 14 MNFGCs, SSIs and LGUs.
As has been previously reported, the national government registered a budget deficit of P242.8 billion, equivalent to 2.3% of GDP. This amount is lower than the full year program by P36.3 billion.
The 14 GOCCs’ deficit of P4.9 billion was an improvement from the 2011 deficit of P19.8 billion. The reduction came from PSALM due to accelerated privatization payments and higher prices in Wholesale Electricity Spot Market. This improvement in PSALM was partly negated by the accelerated capital expenditures by NHA corresponding to housing for uniformed personnel, and by MWSS due to accelerated disbursement for the Angat Water Utilization Aqueduct Improvement Project to ensure safety of raw water and security of water source.
Likewise, the SSIs’ (SSS, GSIS, PHIC) recorded an actual surplus of P72.7 billion on the account of higher revenues from members’ contributions and higher investment income derived from the holdings of NG securities. The government financial institutions that include the Development Bank of the Philippines (DBP), Trade and Investment Development Corporation (TIDCORP) and Landbank posted a combined surplus of P9.3 billion on the account of higher earnings on its investments on bonds and securities.
Bangko Sentral ng Pilipinas (BSP) registered a deficit of P94.4 billion mainly due to losses incurred on its open market operations as a result of exchange rate and price fluctuations. On the other hand, the aggregate net income from current operations of local governments (LGUs) reached a total of P73.6 billion due to higher internal revenue allotment and income derived from local sources.