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A broader look at today’s business Friday, May 24, 2024 Vol. 19 No. 220
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WEAK PESO WON’T HALT GOAL ON RATE CUT–BSP By Cai U. Ordinario @caiordinario
PHL GROWTH MANILACENTRIC DESPITE REGIONS’ GOOD DATA
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HE weakness of the Philippine peso will not become a hindrance to the aim of the Bangko Sentral ng Pilipinas to bring down key policy rates this year, according to BSP Governor Eli M. Remolona Jr. RULETKKA | DREAMSTIME.COM
Briefing reporters recently, Remolona said it is only when inflation becomes de-anchored that monetary authorities would consider raising rates. Earlier, economists and ana-
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lysts raised the possibility of either raising policy rates or increasing foreign exchange intervention in order to defend the See “Weak,” A
HE country’s economic growth remains largely Manila-centric despite the recent high growth rates posted by regions nationwide, according to the National Economic and Development Authority (Neda). In a statement, Socioeconomic Planning Secretary Arsenio M. Balisacan said while regions are growing faster
than the National Capital Region (NCR) or Metro Manila, he admitted that growth inclusivity from a geographic dimension remains a challenge. In 2023, the fastest-growing region was Central Visayas with a growth of 7.3 percent followed closely by Western Visayas with 7.2 percent and See “PHL,” A
Heat stress threatens hog output
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L Niño stunted the growth of pigs, affecting the performance of the country’s hog sector, according to the National Federation of Hog Farmers Inc. (NatFed). “This is the first time that we experienced this kind of heat, and this had an impact on the performance of the hog sector,” Alfred Ng, vicechairman of NatFed, said on the sidelines of the opening ceremony of the Livestock and Aquaculture Philippines 2024 in Pasay City. “Instead of the usual liveweight of 120 to 150 kilos, hog raisers are considered lucky if their animals reach 90 to 100 kilos,” he said in a mix of English and Filipino. Ng also said the stunted pigs were sold even before they reach the ideal liveweight as the animals refused to eat. “Because animal feeds are expensive, chances are the raisers would sell the hogs once it reaches the right age even if their weights have declined,” he said. “Even if you try to feed them, they won’t eat and won’t grow.” He said the raisers are restocking their farms to expand annual output by 10 percent to 15 percent. See “Heat,” A
ROYAL SUPPORT. Queen Máxima of the Netherlands, 4th from left, speaks with President Ferdinand Marcos Jr. during a courtesy call at Malacañang Palace on May 22, 2024, in Manila. Queen Máxima, in her capacity as the United Nations Secretary-General's Special Advocate for Inclusive Finance for Development (UNSGSA), has vowed to support inclusive finance and financial health efforts in the Philippines, Malacañang said Thursday. During her three-day visit, she is focusing on connectivity, cybersecurity, digitization, and interoperable payments, crucial for underserved groups like farmers and MSMEs. She first visited the Philippines in 2015 for the launch of the National Strategy for Financial Inclusion (NFSI). EZRA ACAYAN/POOL PHOTO VIA AP
Budget swings to ₧42.7-B surplus in April By Reine Juvierre Alberto @reine_alberto
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HE national government has reverted to a budget surplus amounting to P42.7 billion in April, after recording a fiscal deficit of P195.918 billion in March, according to the Bureau of the Treasury (BTr). The Treasury said, however, that the P42.7-billion budget surplus was 36.06 percent lower than the P66.8 billion recorded in the same month last year. “The lower surplus for the month was due to the 32.25 percent acceleration in public expenditures, which outpaced the 21.90 percent rise in government revenue collec-
tion,” the Treasury said. This brings the year-to-date budgetary shortfall to P229.9 billion, more than double last year’s level of P204.1 billion. Revenue collections in April amounted to P537.2 billion, up by 21.9 percent from the P440.7 billion recorded a year ago on the back of higher year-on-year growth in both tax and non-tax revenues. “The increase in tax revenues was fueled by double-digit growth in the collections of revenue collecting agencies while the increase in non-tax revenues was due to strong dividend remittance,” the Treasury said. Year-to-date tax collections grew by 16.80 percent to P1.470 com-
pared to the P1.259 trillion recorded in the same period in 2023. The Bureau of Internal Revenue (BIR) collected P378.5 billion in April, higher by 12.65 percent than the P336 billion recorded in 2023. “The Bureau’s collection growth was due to an overperformance in all major tax types compared to the same period in 2023. Both income tax and VAT posted double-digit growth as annual income tax filing, and Q1 2024 VAT payments are due during the said month,” the Treasury said. Meanwhile, the Bureau of Customs (BOC) recorded P80.7 billion in revenue collections in April, which also higher by 19.52 percent from last year’s P67.6 billion.
The Treasury’s income for April expanded to P64 billion, triple the P18.3 billion posted a year ago. The BTr attributed this to the increase in dividend remittances as staterun corporations increased their remitted annual net earnings to 75 percent from 50 percent following the Department of Finance’s (DOF) directive. The Land Bank of the Philippines is the top dividend contributor for the month with P32.1 billion, followed by the Philippine Ports Authority (P5.1 billion), Manila International Airport Authority (P3.5 billion), and the Subic Bay Metropolitan Authority (P3.1 billion). See “Budget,” A
PESO EXCHANGE RATES Q US 58.1630 Q JAPAN 0.3712 Q UK 73.9892 Q HK 7.4500 Q CHINA 8.0318 Q SINGAPORE 43.0805 Q AUSTRALIA 38.4981 Q EU 62.9731 Q KOREA 0.0426 Q SAUDI ARABIA 15.5085 Source: BSP (May 23, 2024)