The National Government posted a deficit of P53.2 billion last July, bringing the year-to-date deficit to P104.5 billion, on track to meet the government program for the first three quarters at P144.4 billion.

Finance Secretary Cesar Purisima pointed out that the increased pace of expenditures was an encouraging sign for government operations.

“Our fiscal operations for July show that our expenditures have gained momentum, indicating increased investments in priority infrastructure and social projects. With both revenues and expenditures posting double-digit increases, this marks that the Philippine government is stepping up its efforts to support our growing economy,” Purisima said.

For July alone, revenues totaled P144.62 billion against expenditures of P197.84 billion. From January to July, aggregate revenues summed up to P984.09 billion, financing P1,088.60 billion in expenditures.

Netting out interest payments, the government was able to achieve a primary surplus amounting to P0.29 billion as of July despite higher disbursements, bringing the year-to-date surplus to P106.13 billion.

Revenues

NG revenues for July grew 17.3% compared to the same month last year driven by improved collections from the Bureau of Internal Revenue and the Bureau of Customs. Revenues for July totaled P144.62 billion, bringing the seven-month total to P984.09 billion, 11.3% higher than revenues for the same period last year.

For July, BIR was able to collect P100.10 billion while BOC collections amounted to P27.67 billion, growing by 19.9% and 13.5%, respectively, from the same month last year. Bureau of Treasury had an income of P7.95 billion while revenue from other offices amounted to P8.91 billion, 15.3% higher year-on-year.

Expenditures

National Government expenditures amounted to P197.84 billion for July. Year-on-year, expenditures were up P35.3 billion or 21.7% for the month of July. Total disbursements for January to July amounted to P1,088.60 billion, P130.74 billion or 13.6% higher than comparable disbursements in 2012.

Philippines Among Growth Leaders for Q2, Moves Up on Competitiveness Scale

Philippine second-quarter GDP growth was recorded at 7.5%, faster than any other country in ASEAN, and matching China’s growth for the second straight quarter. Purisima noted that growth in the Philippines sustained its strength from the first quarter amid capital outflows and currency devaluations observed in other emerging markets.

“That this growth comes at a time when other economies are forced to retreat due to uncertainty signals that the Philippines has evolved to differentiate itself from the limitations of the traditional emerging market model. Of note is increased government activity afforded by expanded fiscal space, which pushed public construction and government consumption to grow by 31.1% and 17.0%, respectively, for the second quarter,” Purisima said.

Last week, the World Economic Forum posted the 2013-2014 edition of Global Competitiveness Report, where the Philippines recorded a jump in ranking from 65th overall to 59th overall. On the ‘institutions’ ranking, the key marker of governance in the report, the Philippines rose 15 places to 79th, which Purisima said was evidence of even more investor confidence driven by public trust.

“President Aquino’s policy that ‘good governance is good economics’ continues to earn us believers among the economics and business communities, and we expect even more favorable rankings next year,” Purisima said.