BIR, Customs collections up

THE GOVERNMENT’S fiscal performance for the first month of the year was marked by continued disbursement acceleration, primarily intended to boost economic growth.

The Aquino administration posted a deficit of P15.943 billion in January, a reversal of the P13.424-billion budget surplus recorded in January 2011. In total, the government collected P126.354 billion in revenues against P142.297 billion worth of expenditures.

Netting out interest payments, the government is still on a primary surplus of P34.337 billion as fiscal consolidation momentum is sustained.

BIR, Customs sustain revenue gains

Time difference in GOCC dividend remittance affects January revenue take

The government’s top revenue agencies, the Bureaus of Internal Revenue (BIR) and Customs, collected more revenues in January as they sustained the positive drive amid momentum from the good 2011 performance.

BIR, which accounts for 70% of state tax revenues, increased its take by 14.2%, collecting P85.147 billion in January against last year’s P74.569 billion. Breaking down the figure, the bureau, which ended 2011with also a double-digit growth, had bulk of its collections in cash totalingP85.115 billion.

BIR’s total January collection was also 97.55% of its P87.282-billion target that month.

Customs, for its part, had its entire January haul in cash, with total collections rising 7.1% from a year earlier to P21.990 billion.

Meanwhile, Treasury collections decreased by 64.3%in January, primarily due to the time difference in the remittance of dividends from government-owned and –controlled corporations (GOCCs).

In 2012, GOCCs remitted some P19 billion in dividends to the national government in early February, rather than late-January which was what happened in 2011. Had the amount been credited in January, to make the figures comparable year-on-year, not only would have revenues increased, but a budget surplus of roughly P4 billion would have been realized despite increased spending.

Finance Secretary Cesar V. Purisima on Wednesday expressed confidence that revenues will sustain its performance from last year, when revenue growth hit its highest in a decade.

“Both BIR and Customs, which account for roughly 90% of state revenues, posted significant gains in January. As we continue to strengthen tax administration efficiency, I do not see any reason for us not to surpass our performance last year,” Purisima said.

“The government will continue its fight against tax evasion and smuggling and plug loopholes in our system to boost our revenues,” he added.

Congress help is however needed, Purisima said, reiterating the need for “the timely passage of the fiscal incentives rationalization and excise tax reform bills to generate more state resources.”

“Following a notable performance last year, the government looks at 2012 as an opportunity to continue with its fiscal consolidation process as it strives for higher, sustainable and more inclusive growth,” he said.