MANILA -- The Philippine government continues to post year-on-year improvement in its revenue collections in end-November 2014 resulting to a P 26.8 billion budget deficit to date, far lower than the P266 billion ceiling for the year.

Data released by the Department of Finance (DOF) Monday showed that total revenues in the first 11 months of the year rose 11 percent to P1.74 trillion over year-ago's P1.6 trillion.

Of the total, collections of the Bureau of Internal Revenue (BIR), which contributes about 70 percent of the government revenues, went up by nine percent to P1.22 trillion against year-ago's P1.12 trillion.

The Bureau of Customs (BOC) shared in P324.6 billion, up 16 percent from year-ago's P280.7 billion.

Both the Bureau of the Treasury (BTr) and the Other Offices also posted higher revenues with P90.5 billion and P100.2 billion, respectively.

These are 20 percent and 12 percent higher against the collection of the BTr and Other Offices same period in end-November 2013.

Total expenditures during the 11-month period rose five percent to P1.76 trillion compared to the P1.68 trillion in the previous year.

"With the recent Moody's credit rating upgrade, as well as improved scores in the Millennium Challenge Corporation scorecard leading to our eligibility for a second compact, one thing is clear: the Philippines is in a virtuous cycle. Prudent fiscal management by the national government keeps us in this sweet spot, reaping rewards and raring to reach for more,” Finance Secretary Cesar Purisima said in a statement.

Similarly, Purisima noted that monthly interest payments (IP) amounted to P18.1 billion last November, steady since last year.

He said IP, as a percentage of expenditures, hit 12 percent, one percentage point higher from a year ago due to higher foreign IP.

He, on the other hand, cited that for the 11-month period this year IP “still indicate a one percentage point decrease to 17 percent compared to the same period in 2013.”

Thus, he stressed that “the continued decline in interest payments, apart from the substantial hauls pulled in by the revenue agencies, significantly expands our fiscal space and enables us to fuel more growth.”

"Credit rating upgrades that respond to the government's commitment to good governance and sound economic management, for example, lower our borrowing rates and free up more funds for more productive investments,” he said.

However, revenues of most of these revenue-generating agencies contracted last November, the first for the year for both the BIR and the BOC.

Only the Other Offices registered improvement after pinching in P8.2 billion, 27 percent higher than its P6.5 billion in November 2013.

BIR collections went down by four percent to P121.9 billion against the P126.6 billion in November 2013.

Revenues of the BOC declined by 3.6 percent to P24.7 billion compared to the P28.3 billion same period last year.

The BTr contributed P3.4 billion, down from the P3.8 billion same period in 2013.

Total government expenses during the month dipped by eight percent to P151.4 billion from year-ago's P164 billion.*PNA

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