NG not seen to post budget surplus by yearend By Reine Juvierre Alberto @reine_alberto
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HE national government could fall short of a budget surplus by the end of the year despite recording an P88-billion surplus in January 2024. Finance Secretary Ralph G. Recto said he is not expecting a budget surplus by the end of the year. “For me, for as long as we hit our targets, our revenue targets, and our expenditure targets, I don’t expect a surplus by the end of the year,” Recto told reporters on the sidelines of the World Economic Forum (WEF) Country Roundtable press briefing on Tuesday.
Data from the Bureau of the Treasury (BTr) showed the government posted a budget surplus of P88 billion in January this year, over 92.25 percent higher than the same month last year, as revenue collections outpaced government spending during the period. ( See:https://businessmirror.com. ph/2024/03/15/ng-posts-p88-b-budget-surplus-in-january-as-revenuecollection-outpaces-spending/)
Recto added that there is also a surplus in February, but the Treasury has not released any data yet. “So far, the revenue seems to be good. I hope that holds all the way up to the end of the year,” the Finance chief said.
Out of cautiousness, though, he is also not expecting a sustainable surplus throughout the whole year. “For as long as we hit our targets, I’m happy with that,” he added. According to Recto, government revenues rose by 20 percent yearon-year (YoY) while spending is also up by 10 percent YoY, indicating a surplus, as of March 19. “So far we’re hitting the numbers, surpassing the targets, and we hope that continues,” Recto added. To improve tax collection, Recto said the Department of Finance (DOF) is assisting the Bureaus of Internal Revenue and Customs in
analyzing all their data and providing them with data as well on where to concentrate to collect the taxes and to whom they should be collecting the taxes from. WEF President Borge Brende said that the WEF delegates are “very bullish” on the Philippine economy as long as reforms are continued. (https://businessmirror. com.ph/2024/03/20/with-reformsphl-can-be-2-teconomy-in-next-decade-wef/)
“I think that this could be, in the coming decade, a $2-trillion economy,” Brende said at the press briefing.
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BSP: INFLATION COULD HAVE HIT 3.9% IN MAR By Cai U. Ordinario
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ILIPINOS may have experienced faster inflation in March, a rate closer to the higher end of the inflation target set by the monetary authorities, according to the Bangko Sentral ng Pilipinas (BSP).
On the sidelines of the launch of the Digital Financial Inclusion Awards on Wednesday, BSP Governor Eli M. Remolona Jr. said inflation in March may have been around 3.9 percent. The BSP’s inflation target is 2 to 4 percent for 2024. Inflation in February increased to 3.4 percent from 2.8 percent in January. Inflation was at 7.6 percent in March 2023. “It will be close to 4 [percent]. It could be 3.9 [percent], you know. But we’ll see,” Remolona said, partly in Filipino. If the March inflation rate reaches 3.9 percent, this will mark the fourth month that the inflation rate was within the BSP’s 2 to See “BSP,” A
SOMETHING TO ASPIRE FOR
Buildings in Mandaluyong City stand tall, reflected along the Pasig River in this photo of March 20, 2024. According to the World Economic Forum (WEF), the Philippine economy could grow to as much as $2 trillion in the next decade should the country continue its reforms to attract investments. NONIE REYES
FILIPINOS 2ND HAPPIEST PEOPLE IN ASEAN–GALLUP
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ILIPINOS remain among the happiest people in Southeast Asia, only coming in second to Singaporeans who enjoy higher incomes, according to the results of Gallup’s latest Global Happiness Index (GHI). Based on the latest report, the Philippines ranked 53rd out of 143 countries. This was 23 notches higher than its 73rd out of 137 countries ranking in 2023. The data from the report also showed that the country’s index score was higher at 6.048 in 2024 compared to 5.523 posted
in 2023. “On a 10-point scale, Finland’s average life evaluation ranks it as the happiest country in the world. Afghanistan ranks as the least happy country in the world with a life evaluation of 1.721,” Gallup said. In Southeast Asia, Singapore was considered the happiest country. It ranked 30th out of 143 countries with a score of 6.523 in the GHI. The Gallup World Poll, which remains the principal source of data in this report, asks responContinued on A
Tepid trade, NG loans put BOP in deficit for 2nd month
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ACKLUSTER trade performance and the repayment of the national government’s foreign loans placed the country’s balance of payments (BOP) position in negative territory for the second straight month, according to the Bangko Sentral ng Pilipinas (BSP). In a statement, BSP said the BOP deficit in February brought the current year-to-date BOP level to a $936-million deficit—a reversal from the $2.2-billion surplus recorded in JanuaryFebruary 2023. Based on the preliminary data from the Philippine Statistics Authority’s (PSA) International Merchandise Trade Statistics (IMTS), the trade deficit for
January 2024 reached $4.2 billion, down from the $5.6-billion deficit posted in January 2023. “Based on preliminary data, this cumulative BOP deficit reflected mainly the continued trade in goods deficit coupled with the NG’s net repayments of its foreign loans,” the BSP said. In February, BSP said the country’s BOP position posted a deficit of $196 million lower than the $895-million BOP deficit recorded in February 2023. The BOP position reflects a decrease in the final gross international reserves (GIR) level to $102 billion as of end-February 2024 from $103.3 billion as of Continued on A
PESO EXCHANGE RATES US 55.7780 Q JAPAN 0.3699 Q UK 70.9663 Q HK 7.1299 Q SINGAPORE 41.5664 Q AUSTRALIA 36.4286 Q SAUDI ARABIA 14.8733 Q EU 60.6084 Q KOREA 0.0417 Q CHINA 7.7474 Source: BSP (March 20, 2024)