“I am pleased to note that the National Government has recorded a budget deficit of P2.5 billion in October 2014, 77% narrower than the year-ago deficit, as revenue collections maintain its quick-paced growth. The year-to-date budget deficit was at P33.6 billion, well-within the program.
“The primary balance for the month was at a surplus of P14.2 billion, wider than the year-ago level of P9.2 billion. As of end October 2014, the primary balance was recorded at a surplus of P240.6 billion and also wider than comparable figures last year.
“Over the past three years, we have seen total and tax revenues growing at a quicker pace than GDP. The first three quarters of 2014 were no exception to this trend – total revenues have grown 12.5% while tax revenues have gone up 12.3%, both faster than the 9.1% nominal growth in GDP over the same period.
“We have also made tremendous gains in our tax and revenue efforts – in the period of January to September 2014, we posted a tax effort of 14.1% anda revenue effort of 15.8%, both higher than last year’s comparable figures of 13.7% and 15.3%, respectively. The full-year program revenue effort is 15.7%, which means we have already exceeded the target within the first nine months of the year.
“This notable improvement in collections has been the fruit of automation of tax processes, a heightened campaign against smugglers and tax evaders, and sustained reforms, especially in the Bureau of Customs. With the Philippines taking on a more active role in the global fight against tax evasion, through joining the OECD Committee on Fiscal Affairs and the appointment of the Internal Revenue Commissioner Kim Henares as a UN international tax expert, we are expecting a further boost in our revenue-generating capacity in the future.
“These latest tax and revenue effort figures, along withmanageable national and general government debt levels, clearly manifest that the Philippines continues to stand on firm fiscal footing, which remains to be at the core of our country’s growth story.”
BOC records tenth straight month of double-digit growth
“Revenues totaled P152.3 billion in October, up from last year’s comparable figures by 13.4%. Year-to-date, total revenues reached P1.577 trillion, an increase of 12.6% year-on-year.
“For the tenth straight month, the Bureau of Customs (BOC) posted above-ten percent gains in its collections, raking in P34.2 billion or a growth of 22.6%. Year-to-date, the BOC’s collections amounted to P299.9 billion, a year-on-year improvement of 18.8%.
“The Bureau of Internal Revenue (BIR) raked in P101.8 billion for the month, posting an increase of 6.5%. For the first ten months of the year, the BIR collected P1.098 trillion, also posting a double-digit increase of 10.5%.
“The Bureau of Treasury (BTr) exceeded its target for the month by 93.7%, collecting P5.8 billion or a year-on-year increase of 61.9%. As of end-October, BTr collections stood at P87.1 billion, up 21.5% from comparable figures a year ago.
Interest payments down to 10.8% of expenditures
“National Government disbursements for the month came in at P154.8 billion, growing 6.4% from year-ago figures. For the period of January to October, expenditures reached P1.61 trillion, up 6.4% year-on-year.
“Interest payments for October declined by 18.1% to P16.8 billion; this leaves the percentage of interest payments to disbursements to 10.8%, a vast improvement from 14.1% in October 2013. Year-to-date, the percentage declined to 17.0% from 18.4% a year ago, generating savings of P23.5 billion.