Gov’t posts P52.6-B budget surplus for April

The national government reported a budget surplus of P52.6 billion for April, as revenue collections outpaced spending, the Department of Finance (DOF) said Thursday.

The surplus in April was 35% lower than the P80.9 billion booked a year ago partly due to the timing of the remittance of dividends from government-owned and -controlled corporations (GOCCs), lower customs and investment income and faster government spending.

The April figure, however, managed to offset budget deficits incurred from January to March and allowed the government to register a surplus totaling P19.1 billion for the first four months for the first time since 2011.

The government collected P209.1 billion in April, down 7 percent from the P224.4 billion generated during the same month last year. Year-to-date revenues, meanwhile, increased 9 percent to P679.6 billion.

The Bureau of Internal Revenue collected P160.8 billion of the total revenue in April. The government agency has already raked in P467.9 billion since January, as it sustained its growth trajectory for the year.

The Bureau of Customs, meanwhile, contributed 9 percent lower or P28.1 billion in April. Revenue from the previous period, however, offset the decrease to bring the agency's year-to-date collection 3 percent higher at P120.4 billion.

Also, the Bureau of the Treasury more than halved its income to P11.6  billion in April from P30.8 billion in the same period last year due to reduced bond holdings as well as the earlier remittance of dividend collections from GOCCs.

The total revenues collected in April was more than enough to cover government expenses, which increased 9 percent to P156.5 billion. The amount includes P15.7 billion of interest payments.

The government has spent a total of P660.6 billion for the first four months, a 5 percent increase from a year ago. Interest payments accounted for 18 percent or P116.3 billion of the amount.

"We expect this improving pace to further accelerate as agencies continue to uncork the barriers to faster government spending," the Bureau of the Treasury said Thursday.

The Congress recently advanced the Tax Incentives Management and Transparency Act, Fair Competition Act and the easing of the Cabotage law, which would supposedly sustain the country's fiscal health.

"We are confident that the continued expansion of our fiscal space can support the growing spending needs of a booming economy. The reforms we have painstakingly put in place are showing results in due time," DOF said. — BM, GMA News