Consolidated public sector deficit up

MANILA, Philippines - The country’s consolidated public sector deficit (CPSD) amounted to P27.52 billion in the first three quarters of last year, up from the P1.78 billion recorded in the same period in 2011 but still way below the full-year.

The CPSD, an indicator of a country’s creditworthiness, accounted for 0.4 percent of gross domestic product (GDP), based on figures released by the Department of Finance (DOF) yesterday.

The amount was just about a fifth of the P131.15 billion deficit program for the public sector during the nine-month period ending September 2012, which was equivalent to 1.6 percent of GDP.

This was due to the improved fiscal position of the government, better than expected results of local governments and social security institutions and major government-owned or controlled corporations.

The total public sector borrowing requirement reached P80.51 billion, lower than the programmed P202.91 billion for the period.

The government incurred a budget deficit of P106.06 billion, still below the P183.34 billion ceiling set.

Spending, on the other hand, increased 22.5 percent to P1.07 trillion.

The 14 monitored GOCCs posted a surplus of P9.6 billion compared to an anticipated loss of P15 billion. This was attributed to the higher output from state grain-importing firm National Food Authority.

The NFA recorded a P12.5 billion surplus during a peak in distribution period from July to September, as well as an increase in palay procurement during the last quarter.

The social security institutions  — Government Service Insurance System, Social Security System and Philippine Health Insurance Corp. — together registered a budget surplus of P59.65 billion, 30.9 percent higher than the previous year’s P45.57 billion mainly due to higher revenues from members’ contributions.

LGUs increased their surplus to P54.96 billion from P41.67 billion owing to improved revenue collection efficiency and higher IRA disbursements.

The government financial institutions, comprising the Landbank of the Philippines, the 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 (BSP), meanwhile, incurred a deficit of P67.95 billion due to losses on currency stabilization efforts.