PHL public sector deficit widens to P27.52B from P1.78B

The Philippines on Friday reported its consolidated public sector deficit (CPSD)—an indicator of creditworthiness—widened to P27.52 billion in the first nine months of 2012 from P1.78 billion a year earlier as the Aquino administration went on  accelerated spending mode. The nine-month CSPD was about a fifth of the P131.15 billion deficit the government had on its program for the whole of 2012, and was equivalent to 1.6 percent of gross domestic product. Spending increased by 22.5 percent to P1.07 trillion. The Department of Finance noted the improved fiscal position of the national government as well as better-than-expected results of local governments and social security institutions and major government-owned or controlled corporations helped keep the public sector deficit level in a healthy state. Government financial institutions—Landbank of the Philippines,  Development Bank of the Philippines and the Philippine Depository Insurance Corp.—recorded a surplus of P6.325 billion, down from P8.19 billion a year earlier. The Bangko Sentral ng Pilipinas, however, incurred a P67.95-billion deficit, mainly due to its currency stabilization efforts. Government-owned and -controlled corporations or GOCCs posted a combined surplus of P9.6 billion, compared with an anticipated P15-billion loss, largely helped by higher output from the National Food Authority. NFA posted a P12.5-billion surplus. The total public sector borrowing requirement reached P80.51 billion, lower than the programmed P202.91 billion for the period. The government's budget deficit of P106.06 billion as of end-September 2012 remained below the P183.34 billion deficit ceiling. Social security institutions —Government Service Insurance System, Social Security System and Philippine Health Insurance Corp.— registered a combined budget surplus of P59.65 billion, wider by 30.9 percent than the P45.57 billion a year earlier mainly on higher revenues from members’ contributions. Local government units also posted a wider surplus of P54.96 billion from P41.67 billion, owing to improved revenue collection and higher disbursements of internal revenue allotments or their share in national internal revenue. — VS, GMA News