Public sector deficit down in 2012

Improved performance of state-run firms and local governments helped cut of the Philippine public sector's deficit last year, the Department of Finance reported Thursday.  

According to the DOF, the consolidated public sector deficit in 2012 was atP163.3 billion, lower by P11.8 billion than what was recorded in 2011.

It was 1.5 percent of the country’s gross domestic product (GDP) and was also P70.7 billion lower than the  programmed amount for 2012.
 
“The improvement was attributed to the strong performance of the national government, 14 MNFGCs (Major Non-Financial. Government Corporations), SSIs (Social Security Institutions) and LGUs (local government units),” the Finance Department said in a statement.
 
Last year, the 14 monitored government-owned and controlled corporations posted a deficit of P4.9 billion, a marked improvement from the P19.8 billion recorded in 2011.

“The reduction came from PSALM (Power Sectors, Assets and Liabilities Management Corp.) due to accelerated privatization payments and higher prices in Wholesale Electricity Spot Market,” the DOF said.
 
This improvement was partly offset by the accelerated capital expenditures by the National Housing Authority and the Metropolitan Waterworks and Sewerage System.

The SSIs, comprised of the Social Security System, the Government Service Insurance System and Philippine Health Insurance Corp., posted a surplus of P72.7 billion, given higher revenues from members’ contributions and higher investment income derived.
 
Government financial institutions Development Bank of the Philippines, Trade and Investment Development Corporation and Land Bank of the Philippines also recorded a combined surplus of P9.3 billion on higher earnings from bonds and securities investments.
 
The Bangko Sentral ng Pilipinas, meanwhile, registered a deficit of P94.4 billion chiefly due to losses incurred on its open market operations as a result of exchange rate and price fluctuations.
 
On the other hand, the aggregate net income from current operations of LGUs amounted to P73.6 billion due to higher internal revenue allotment and income derived from local sources. — BM, GMA News