Public sector deficit hits P47.3-B in Q1
abs-cbnNEWS.com | 11/05/2009 6:55 PM
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MANILA - After hitting a P28.67-billion surplus at the end of last year, the country's public sector fiscal position reverted to a P47.3-billion deficit in the first 3 months of 2009.
The amount is P29 billion more than the P18.1-billion deficit recorded in the same period last year, according to Finance Secretary Margarito Teves. He attributed the higher shortfall to the government's large budget deficit, which reached P119.68 billion during the first quarter of the year.
For the full year, the Philippines is widely seen to exceed its P250-billion budget gap target.
"The substantial increase in the public sector's deficit was largely due to the higher-than-programmed deficit of the national government," Teves said.
Still, Teves said the ballooning budget gap was partially offset by the improved performance of government-owned and controlled corporations (GOCC), local government units, (LGU), and government financial institutions (GFI).
GOCCs recorded a P14-billion surplus in the first quarter, driven mainly by higher operating income during the period.
On the other hand, Teves said surpluses from state-run Government Service Insurance System (GSIS), Social Security System (SSS), and Philippine Health Insurance Corp. (PHIC) reached P20.4 billion on the back of higher investment income from government securities.
The Bangko Sentral ng Pilipinas (BSP), meanwhile, recorded a P3-billion surplus in the first quarter from a P24-billion deficit in the same period last year. LGUs posted a P30-billion surplus on the back of higher income from real property and business taxes.
The Philippines is looking at a consolidated public sector deficit of P232.95 billion this year, to be driven mainly by the national government's widening budget gap. This means the country's public sector is expected to be in the red again after 3 years of surpluses.
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