Philippines posts public sector surplus first time in 11 years

The Philippines posted a public sector surplus for the first time in 11 years last year due to a strong peso and improved financial situation of government-owned and controlled corporations (GOCC), said Finance Secretary Margarito Teves Tuesday.

Teves said in a statement the consolidated pubic sector financial position for 2006 was a surplus of 5.33 billion pesos (110 million U.S. dollars) or 0.1 percent of gross domestic product, compared with 103.54 billion pesos (21 billion U.S. dollars) in deficit or 1.9 percent of GDP in 2005.

"The public sector posted a surplus amounting to 5.3 billion pesos, the first time since 1996. This was due to governance reform resulting in improved receipts and lower costs including debt servicing," Teves said.

In 1996, the Philippines had a public sector surplus of 7.5 billion pesos (156 million U.S. dollars).

Finance undersecretary Gil Beltran said the unexpected surplus is due to the government's strong fiscal position and improved finances of GOCCs particularly National Power Corporation and Light Rail Transit Authority.

The public sector balance represents financial position of all government entities including the national government, local government units, GOCCs, government financial institutions, and social security institutions.

Source:Xinhua