P1-B budget surplus in November

MANILA, Philippines - The government posted a budget surplus of P1 billion in November from a deficit the previous month, on the back of higher tax revenues and stronger economic growth.

A budget surplus occurs when tax revenue is greater than government spending. It is widely considered a sign of efficient governance.

The P1-billion surplus – a remarkable turnaround from the expected deficit of P20.5 billion for the month – provided a glimmer of hope for the country bruised by Super Typhoon Yolanda, considered the strongest typhoon in history to have made landfall.

Yolanda ripped through Eastern Visayas last Nov. 8, killing more than 6,000 people and flattening Tacloban City and many parts of Leyte and Samar.

The unanticipated surplus for November may be used to pay off debt, kept as savings, fund infrastructure and civic activities, or finalize long-delayed purchase.

The latest data have brought the country’s total budget deficit for January to November 2013 to P111.5 billion or safely below the official ceiling of P173.2 billion.

Without interest payments, the government’s primary surplus stood at P19.1 billion for November, or a primary surplus of P185.2 billion in the first 11 months of 2013.

Total revenues for November amounted to P165 billion, up six percent year-on-year. It marks the government’s highest collection after April’s total of P190 billion.

Spending, on the other hand, reached P164 billion in November, bringing the year-to-date figure to P1.677 trillion or an increase of nine percent from the expenditures recorded in the same period in 2012.

Finance Secretary Cesar Purisima said the country’s strong economic growth has helped the government achieve a fiscal surplus.

He said the increased fiscal space in November was encouraging as it came at a time when the national government had to invest heavily to rehabilitate the storm-ravaged Eastern Visayas.

“This is an example of how our economic strength translated directly to resiliency in service of our affected countrymen,” Purisima said.

The fiscal surplus was also attributed to the intensified tax collection efforts by the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC).

Total revenues from January to November rose 11 percent to P1.57 trillion, with both the BIR and BOC posting double-digit growth year-on-year.

The government’s main tax collection agency, BIR registered revenues of P126.5 billion for the month, reflecting a 14 percent increase over the same month the previous year.

BOC collections grew 19 percent to P28.2 billion amid an ongoing reorganization aimed at turning the agency into a graft-free, competent and professional organization.

The Bureau of Treasury, meanwhile, exceeded its program collection in the 11-month period by 44 percent, chalking up P75.5 billion in revenues.

Interest payments for November exceeded BTr’s program by two percent in November. This brings year-to-date interest payments to P296.7 billion – still below the government’s cap of P302.8 billion, and reflecting interest savings of P6.1 billion.

The national government continues to show progress in reducing interest payments as a share of national expenditures. January to November 2013 payments narrowed down to 17.7 percent of the government’s total disbursements, as against 18.4 percent in the same period in 2012.