The overall public sector deficit for 2012 reached P163.3 billion, or 1.5 percent of the country’s gross domestic product (GDP), the Department of Finance (DOF) reported on Thursday.
In a statement, the Finance department said that the amount is P11.8 billion lower compared to the figure recorded in 2011, which has a ratio of 1.8 percent of GDP in 2011.
The public sector deficit was also P70.7 billion lower than the programmed, it added.
The improvement was attributed mainly to the improved performance of the national government, 14 monitored non-financial government corporations, Social Security Institutions (SSIs), and local government units.
Earlier, it was reported that the national government registered a budget deficit of P242.8 billion, equivalent to 2.3 percent of GDP, lower than the full year program by P36.3 billion. Furthermore, the DOF said that 14 government-owned and -controlled corporations recorded a deficit of P4.9 billion, an improvement from the 2011 deficit of P19.8 billion.
Meanwhile, it noted that the reduction came from Power Sector Assets and Liabilities Management Corp. (PSALM) because of the accelerated privatization payments and higher prices in Wholesale Electricity Spot Market.
”This improvement in PSALM was partly negated by the accelerated capital expenditures by NHA [National Housing Authority] corresponding to housing for uniformed personnel, and by MWSS [Metropolitan Waterworks and Sewerage System] because of the accelerated disbursement for the Angat Water Utilization Aqueduct Improvement Project to ensure safety of raw water and security of water source,” it stated.
Also, the Finance department mentioned that SSIs’ [Social Security System, Government Service Insurance System, Philippine Health Insurance Corp.] recorded an actual surplus of P72.7 billion on the account of higher revenues from members’ contributions, and higher investment income derived from the holdings of the national government securities.
The DOF continued that the government financial institutions that include the Development Bank of the Philippines, Trade, Investment Development Corp. and Land Bank of the Philippines posted a combined surplus of P9.3 billion on the account of higher earnings on its investments on bonds and securities.
The Bangko Sentral ng Pilipinas registered a deficit of P94.4 billion mainly because of losses incurred on its open market operations as a result of exchange rate and price fluctuations, it added.
”On the other hand, the aggregate net income from current operations of local governments reached a total of P73.6 billion due to higher internal revenue allotment and income derived from local sources,” the agency added.