Gov’t posts P11.8-B budget surplus in May

MANILA, Philippines - The government posted a budget surplus of P11.8 billion in May, its second straight month in the black, on sustained double-digit growth in revenues.

The fiscal performance for the month of May resulted in a surplus of P8.5 billion, a reversal of the P42.8-billion deficit recorded in the same period last year.

This came as government spending contracted by four percent last month to P160.5 billion. However, disbursements picked up pace from January to May, rising five percent to P786.6 billion.

Revenues for May rose 12 percent to P172.3 billion, of which 92 percent comprised tax collections.

The Bureau of Internal Revenue, the government’s main tax collection agency, grew its collections by 15 percent to P128.3 billion.  For the five-month period, collections went up by nine percent to P549.1 billion.

The Bureau of Customs sustained its upward trajectory, pitching in P28.8 billion for the month or 11 percent higher than the May 2013 figure. This brings year-to-date collections to P146.1 billion, up 20 percent from the previous year.

“This signifies the third straight month of double-digit year-on-year growth for total revenues and the fifth straight month for the Bureau of Customs. If we keep up this performance, we are on track to fund more crucial infrastructure projects, especially the three new ones recently approved by the NEDA Board,” said Finance Secretary Cesar Purisima.

The surplus in May highlighted how much an improving economy and more efficient debt management have helped improve the country’s fiscal position.

The Philippines, once a basketcase of the region, has been growing at a healthy and steady pace, having been upgraded to investment grade by all three major  global ratings agencies.

“The National Government continues to show proactive liability management and promote the sustainability of its debt portfolio, as manifested by the decreasing share of interest payments to government spending,” Purisima said.

From January to May, interest payments accounted for 17.8 percent of expenditures, an improvement from 18.5 percent last year.