National Government Budget Balance at Surplus of P13.7 Billion for H1 2015

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National Government Budget Balance at Surplus of P13.7 Billion for H1 2015
June 2015 registers deficit of P72.7 billion as expenditures accelerate

The National Government registered a P72.7 billion deficit for June 2015, surpassing the year-ago deficit of P62.5 billion. For the first half of 2015, a surplus of P13.7 billion was recorded, P67.7 billion higher than the P54 billion deficit posted at the same time last year.

Year-to-date, the primary balance was recorded at a surplus of P169.9 billion, 61% higher than the P105.8 billion posted last year.Revenues up across the board

Total revenues for the month amounted to P163.6 billion in June 2015, up 18% year-on-year. Meanwhile, total revenues for the first half of the year breached the trillion-peso mark at P1,085.7 billion, growing by 16% compared to year-ago figures.

Finance Secretary Cesar V. Purisima said, “As we close out the first half of the year, we continue to see robust growth trends across the board–be it from the revenue generating agencies or the expenditure side. June shaped up to be a good month for our fiscal story as performance at the BIR and the BOC jumped by double digits.”

Year-to date collections of the Bureau of Internal Revenue (BIR) reached P705.9 billion, growing 10% from comparable figures in 2014. The BIR collected P109.6 billion for the month, jumping 16% year-on-year.

For June 2015, the Bureau of Customs (BOC) collected P31.5 billion as it registers its second positive growth for the year despite sagging oil prices, higher by 15% compared to June 2014, and exceeding its P29.9 billion target by 5.2%. Non-oil revenues continue to perform well, up by P6.2 billion or 30% this June. Both volume and value of non-oil imports grew by 26% and 8%, respectively.

The BOC’s total haul for the first semester amounted to P178.6 billion, 3% higher year-on-year.

Meanwhile, income from the Bureau of the Treasury (BTr) amounted to P6.6 billion for June, lower by 6% year-on-year. First semester income amounted to P67.0 billion, 7% higher than year-ago figures.

Expenditure uptick a high water mark

“We are seeing a strong showing on the expenditure side as well, with the 17% growth posted this month a high water mark for the year. This reflects the government’s continued commitment to accelerate the use our ample fiscal space for critical investments to our economy and people.” Purisima noted.

National Government disbursements for the month totaled P236.2 billion, expanding by 17% compared to June 2014, 24% above program. For the first semester, expenditures breached the trillion-peso mark at P1,072.0 billion, reflecting an increase of 9% from year-ago levels.

Year-to-date, interest payments amounted to P156.1 billion, 2% lower from a year-ago levels and 9% below program. June 2015 interest payments totaled P19.2 billion. Interest payments for January-June 2015 accounted for 15% of expenditures, improving on the 16% share recorded last year.

“The Philippines will continue to keep its fiscal house in excellent health as it weathers the turbulence in the global economy caused by a number of recent developments.

Pumping productive spending with adequate fiscal space is expected to help propel even higher broad-based growth. We are confident that improving revenue collections and the highly liquid tone of the market can respond to our funding requirements.Wider fiscal latitude and strong macroeconomic fundamentals make the Philippines a picture of stability and a stand-out in the league of emerging markets. We vow to protect the enviable position we have secured for our people,” Purisima added.