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.