Purisima: Prudent fiscal management keeps us in virtuous cycle
“I am pleased to note that the National Government’s budget balance in November 2014 was at a surplus of P6.8 billion, wider than the year-ago surplus of P1.0 billion. Year-to-date, the budget balance was at a deficit of P26.8 billion, well-within the program,” Finance Secretary Cesar Purisima said.
The primary balance for the month was at a surplus of P24.9 billion, wider than last year’s comparable figures of P19.1 billion. As of end-November, the primary balance was recorded at a surplus of P265.5 billion, also wider than last year’s level.
He added: “With the recent Moody’s credit rating upgrade, as well as improved scores in the Millennium Challenge Corporation scorecard leading to our eligibility for a second compact, one thing is clear: the Philippines is in a virtuous cycle. Prudent fiscal management by the national government keeps us in this sweet spot, reaping rewards and raring to reach for more.”
January-November revenue collections sustain double-digit growth streak
Total revenues totaled P158.2 billion in November. As of end-November, total revenues reached P1.735 trillion, expanding 10.8% year-on-year.
Year-to date collections of the Bureau of Customs (BOC) have likewise grown at double-digits. The BOC’s take for the month came in at P24.7 billion, bringing its total collections for the first eleven months of the year to P324.6 billion, a year-on-year growth of 15.6%
Year-to date collections of the Bureau of Internal Revenue (BIR) also continued its rapid growth – the BIR raked in P121.9 billion for the month, bringing the January-November tally to P1.220 trillion, up 8.9% from comparable figures in 2013.
For the tenth time this year, the Bureau of the Treasury (BTr) exceeded its monthly target, collecting P3.4 billion in total income. Total BTr income for the first eleven months of the year came in at P90.5 billion, higher than year-ago levels by almost twenty percent.
Interest payments generate savings of P27.6 billion
National Government disbursements for the month totaled P151.4 billion. For the period of January to November, expenditures reached P1.762 trillion, an increase of 5.1% from year-ago levels.
Year-to-date interest payments of P292.3 billion were lower than programmed, thus generating savings of P27.6 billion for the National Government. Another result of prudent liability management measures is the steady decline of the share of interest payments to expenditures. For January to November 2014, the percentage stood at 16.6%, down from 17.7% in the same period last year.
“The continued decline in interest payments, apart from the substantial hauls pulled in by the revenue agencies, significantly expands our fiscal space and enables us to fuel more growth,” Purisima noted. “Credit rating upgrades that respond to the government’s commitment to good governance and sound economic management, for example, lower our borrowing rates and free up more funds for more productive investments.”
“The quick-paced growth of year-to-date revenues leaves even more room for strategic government expenditures. With increased fiscal space to invest in health, education, infrastructure, and other social services, we are able to reap even more rewards for the Filipino people. Such is the virtuous cycle put into motion by this administration’s conviction that good governance spurs good economics.”