Manila records surplus

Manila records surplus

MANILA (AFP): The Philippines had a public-sector surplus of
five billion pesos (US$208 million) in the 10 months to October
on the back of improved revenue collection and lower interest
rates, the finance department said yesterday.

It was the first time that Manila attained a surplus since
1985, when it began monitoring the fiscal position of the
national government as well as state-run agencies, funds and
corporations.

The surplus wiped out a 1.3-billion-peso consolidated public
sector deficit recorded in the nine months to September.

The Philippines has promised its international creditors that
it will maintain the shortfall at one percent of gross national
product.

Officials credited the surplus to the improved fiscal position
of the national government boosted by non-tax revenues such as
fees, income from investments and proceeds from the sale of state
interests in major firms.

The Bureau of Internal Revenue also reported higher
collections despite the deferment of the implementation of a
value-added tax law even as lower interest rates resulted in huge
savings from the repayment of government securities.