DOF reports public sector surplus of P23.516 Billion in 9 months
The Philippines posted a consolidated public sector surplus of P23.516 billion from January to September 2008, or 0.4 percent of gross domestic product (GDP), according to a Department of Finance report yesterday.
The 2008 surplus is significantly below the posted surplus for the same period in 2007, which was, according to DOF, due to the need to spend for the economy in the wake of the global financial crisis.
The DOF said however that the 60 percent decrease in surplus from the same period in 2007 is in accord with the pump-priming objectives of the government.
The consolidated public sector surplus is the combined budget surpluses of the National Government and state-owned firms including government-owned and controlled corporations (GOCCs), local government units and government financial institutions.
The DOF added that the surplus for the 9 month period was partly due to the improved financial position of the country’s 14 major government-owned corporations, social security institutions and local government and partly to the delays in capital outlays arising from limited absorptive capacity of implementing agencies.
DOF cited 14 GOCCs which registered an aggregate deficit of P12.5 billion, which is lower than the projected deficit of P36.3 billion. Also cited was social security institutions which registered a total surplus of P39.5 billion of which GSIS registered a surplus of P23 billion. The Bangko Sentral ng Pilipinas also recovered to a tune of P4 billion in surplus due to lower costs of monetary management, DOF added.
This report is closely watched by local and foreign debt watchers as it is indicative of the country’s credit risk.
The government expects this year’s consolidated public sector position to hit a deficit of P74.3 billion.
