01 December 2014 Manila, Philippines – The National Government (NG) registered a P2.5 billion fiscal deficit in October, 77% lower than the amount posted in the same period last year as expenditures continued to grow at a slower pace than revenues.
Total revenues for the month amounted to P152.3 billion, recording a growth of 13% compared to the same month last year. This brings year-to-date collections to P1.6 trillion, 13% higher over the comparable period last year.
BIR collections continued its year-on-year growth although at a lower increment, raising P101.8 billion for the month, 7% higher than last year’s level. Total BIR collections as of end-October amounted to P1.1 trillion, up by 11% from the same period last year.
BOC sustained its monthly double-digit year-on-year growth with a 23% increase in actual collections for October amounting to P34.2 billion. Year-to-date BOC revenue has increased by 19% year-on-year, registering at P299.9 billion.
Total BTr Income contributed the highest year-on-year increase among the NG’s sources of revenues with a P5.8 billion inflow in October, up by 62% from the previous year. The sharp increase is largely due to the higher interest income earned on NG deposits with the BSP. Cumulative Total BTr Income grew by 21% year-on-year with the January to October actual collections of P87.1 billion already exceeding the full-year target of P56.2 billion.
Collections from other offices also posted a significant year-on-year growth of 44%, with P10.5 billion for the month. On a year-to-date basis, collections have reached P92.0 billion, indicating an 11% or P8.9 billion improvement over the same period last year.
NG disbursements amounted to P154.8 billion in October, 6% or P9.2 billion higher than comparable figures last year. Year-to-date NGexpenditures is at P1.6 trillion, 6% higher than spending for 2013.
Interest payments (IP) for the month declined by 18% year-on-year to P16.8 billion from P20.5 billion in 2013 mostly due to reduction in domestic payments. Total IP of P274.2 billion for January to October is lower by P4.4 billion over comparable figures from last year.
Primary Surplus/ (Deficit)
Netting-out interest payments, NG recorded a P14.2 billion primary surplus for October, surpassing the primary surplus for the same period last year and bringing the cumulative primary surplus for the first ten months of the year to P240.6 billion, up by 45% from its 2013 level.