DOF reports January spending boost, revenue hike as BSP sees intl credit upgrade

As the national government posted last January a budget deficit of P15.94 billion—an indicator of increased government spending—the Bureau of Internal Revenue and Bureau of Customs collected more revenues, the Department of Finance (DOF) said Wednesday.   In a statement on its website, the DOF said the BIR collected P85.147 billion, which is 14.2 percent more that the P74.569 billion it raked in 12 months prior. It added that Customs revenues increased 7.1 percent to P21.99 billion.   “Both BIR and Customs, which account for roughly 90% of state revenues, posted significant gains in January. As we continue to strengthen tax administration efficiency, I do not see any reason for us not to surpass our performance last year,” Finance Secretary Cesar Purisima said. The Finance Department said the national government “collected P126.354 billion in revenues against P142.297 billion worth of expenditures.” However, the BIR’s actual collection was 2.45 percent short of its P87.282 billion target for January. “Our country is poised to achieve solid growth this year with both our monetary and fiscal engines running,” Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. said in reaction to the latest fiscal developments. Tetangco also said that “(w)hile the global economy continues to grapple with the adverse impact of the debt crisis in Europe and slower growth in developed countries, the Philippines continues to generate good macro-economic numbers.” The BSP chief had said that he has become more optimistic of the country's prospects for an international credit rating to investment grade. GOCC remittances The DOF also explained in its statement Wednesday that Treasury collections fell by 64.3% in January because government owned and controlled corporations remitted their dividends in February instead of the month before as what happened in 2011.   State firms remitted dividends of P19 billion.   “Had the amount been credited in January, to make the figures comparable year-on-year, not only would have revenues increased, but a budget surplus of roughly P4 billion would have been realized despite increased spending,” the DOF said. “Netting out interest payments, the government is still on a primary surplus of P34.337 billion as fiscal consolidation momentum is sustained,” it also said. — ELR, GMA News