M3 posts slowest growth of 5.7% in 6 mos–BSP By Cai U. Ordinario @caiordinario
E FILIPINO athletes and team officials arrive during the opening ceremony of the 19th Asian Games in Hangzhou, China, Saturday, September 23, 2023. Story on B8. AP
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FFORTS to curb inflation caused domestic liquidity to post its slowest growth in six months at 5.7 percent, according to data released by the Bangko Sentral ng Pilipinas (BSP). BSP said domestic liquidity (M3) increased to P16.2 trillion in July 2023 from P15.37 trillion in July 2022. The data also showed the country’s M3 increased by about 0.2 percent from P16.35 trillion in June 2023.
“[This was] amid restrictive monetary policy/stance in recent months, such as siphoning off some of the excess peso liquidity in the financial system as part of the measures to bring down elevated inflation, curb inflationary pressures, and eventually fulfill the price stability mandate of the local monetary authorities,” Rizal Commercial Banking Corporation Chief Economist Michael L. Ricafort said. Ricafort also said the 5.7-percent growth of M3 was among the slowest in more than two years or since May 2021. He added that it
was among the slowest in more than 11 years or since August 2012. “Relatively lower amount of maturing government securities/Treasury bonds from May-July 2023, especially in July 2023, could have also partly led to the net month-onmonth reduction in M3/domestic in the financial system in recent months, on top of measures to siphon off some of the excess peso liquidity from the financial system,” Ricafort said. The BSP said domestic claims rose 8.9 percent year-on-year in July from 10.1 percent in the pre-
vious month. Claims on the private sector expanded by 8.2 percent in July from 7.9 percent in June, driven by growth in bank lending to non-financial private corporations and households. Net claims on the central government grew by 12.5 percent in July from 17.2 percent in June, due mainly to the borrowings by the National Government. Net foreign assets (NFA) in peso terms fell by 2.6 percent year-onyear in July following a 2.8-percent decline in June. See “M3,” A2
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84.6% TO P133B IN AUGUST
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By Jasper Emmanuel Y. Arcalas
@jearcalas
HE state’s budget deficit in August widened by 84.63 percent to P133 billion from P72 billion as national government spending gained some ground, outpacing revenue collections that declined on an annual basis. The revenues collected by the national government in August declined by 6.58 percent to P310.6 billion from P332.4 billion in the same month last year as both tax and non-tax revenues dropped year-on-year, according to latest data released by the Department of Finance (DOF). DOF data showed the state’s tax collections during the reference month fell by 5.82 percent to P291.7 billion from P309.7 billion as earnings posted by the Internal Revenue and Customs bureaus declined. Earnings attributed to the Bureau of Internal Revenue (BIR) was estimated at P213.5 billion, P15.4 billion lower than the P228.9 billion recorded in August of last year. Finance Secretary Benjamin E. Diokno attributed the drop in BIR collections to the wider income tax exemption this year and the transition of value added tax (VAT) filings to quarterly from a monthly basis. Meanwhile, the Bureau of Collections (BOC) saw a 4.92-percent cut in its collections in August that settled at P213.5 billion from last year’s P228.9 billion. Diokno explained that the drop in the country’s oil imports cou-
pled with lower world oil prices caused the drop in BOC collections. Furthermore, he noted, the work suspensions due to inclement weather affected the BOC’s collection operations. Non-tax revenues of the government, meanwhile, declined by 17.05 percent as collections by other offices fell by about 29 percent. Non-tax revenues in August were at P18.8 billion compared to the P22.7 billion registered in the same month last year. The state’s spending in August grew by almost 10 percent as it reached P443.6 billion from last year’s P404.5 billion, based on DOF data. Both the national government’s interest payments and other expenses grew on an annual basis in August. The state’s interest payments rose by 38.65 percent year-on-year to P42.7 billion while other expenses posted a 27.2-percent increase, reaching P400.9 billion. The national government’s yearto-date budget deficit reached P732.5 billion, 12.06 percent lower than the P833 billion recorded in the Januaryto-August period of last year.
ANIMEZING NORTH 2023 Cosplayers gather for the grand opening of Animezing North 2023, held at SM North Edsa in Quezon City. This event showcases the Japanese animé series One Piece and boasts attractions such as a towering 21-foot Giant Straw Hat Luffy from Toei Animation Enterprises, captivating photo walls, and an array of exclusive One Piece merchandise. The Animezing North: One Piece extravaganza is set to run for 19 days, offering fans an immersive experience like no other. NONOY LACZA
PCG, BFAR SCORE CHINA’S BID TO BLOCK BAJO DE MASINLOC
See “Budget,” A2
EXPLAINER »B4
PHILIPPINE Foreign Affairs Undersecretary Jesus Domingo shares a toast with His Excellency Ambassador Huang Xilian at rites for the 74th founding anniversary of the People’s Republic of China at the Shangri-La Hotel in Taguig. Despite their continuing verbal spats on sea disputes, the two countries affirmed that such do not comprise the sum of their long relationship. BERNARD TESTA
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HERO OR VILLAIN?
RUPERT MURDOCH’S EXIT STIRS STRONG FEELINGS IN BRITAIN, WHERE HE UPENDED THE MEDIA
HE Philippine Coast Guard (PCG) on Sunday scored the installation by the China Coast Guard (CCG) of a floating barrier at the southwest portion of Bajo De Masinloc (BDM), preventing the entry of Filipino fishing boats (FFB) and their crews. Joining the outcry was the
Bureau of Fisheries and Aquatic Resources (BFAR). This act of the CCG deprived Filipino fisherfolk of their livelihood, PCG spokesperson for the West Philippine Sea, Commodore Jay Tarriela, said in a statement Sunday. See “PCG,” A2
PSA data show highest and lowest paid workers in PHL
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ILOTS, software developers, statisticians, and accountants are among the highest-paid workers in the country, according to the latest data released by the Philippine Statistics Authority (PSA). Based on the 2022 Occupational Wages Survey (OWS), the PSA said the overall average monthly wage rate of time-rated workers on a fulltime basis was P18,423 in 2022. This data was obtained from 193 monitored occupations in 72 selected industries. The OWS covered 16,057 formal establishments employing at least 20 workers nationwide, of which wage rates of monitored occupations across selected industries were collected. “This indicates an 11.7-percent increase from the average monthly wage rate of these workers in 2020 at P16,486 and a 1.7 percent increment from their average monthly wage rate in 2018 at P18,108,” the PSA said. PSA said aircraft pilots and re-
lated associate professionals in the Air Transport industry received the highest average monthly wage rate of P135,363 in 2022. This was followed by software developers working in Information Service Activities who received an average wage rate of P70,595 per month. The data also showed mathematicians and actuaries received an average wage rate of P69,654; applications programmers at P58,643; statisticians, P51,607; and accountants and auditors, P48,982. “Four out of the 10 highest paid occupations were engaged in Insurance, Reinsurance and Pension Funding except Compulsory Social Security,” PSA said. The PSA said other top-paid occupations include health workers, specifically specialist medical practitioners with a corresponding average salary of P57,476 a month while medical doctor/generalist medical practitioners with P51,251. See “PSA,” A2
PESO EXCHANGE RATES n US 56.9080 n JAPAN 0.3857 n UK 69.9684 n HK 7.2766 n CHINA 7.7886. n SINGAPORE 41.6481 n AUSTRALIA 36.5008 n EU 60.6696 n KOREA 0.0425 n SAUDI ARABIA 15.1730 Source: BSP (September 22, 2023)