Gov't posts P88-B surplus

The Marcos administration snapped eight consecutive months of budget deficit after it recorded a surplus of P88 billion in January as revenue collections outpaced spending.

- LOUISE MAUREEN SIMEON

Data from the Bureau of the Treasury showed that the government posted a higher budget surplus of P88 billion in January, nearly double the P45.7 billion recorded in the same period last year.

This is also the first time in eight months that the government reverted back to a surplus after the P66.8 billion excess in April 2023.

The January surplus was also the highest recorded since the Treasury started keeping track of cash operations data of the government in 1986.

A budget surplus means that the government earned more than what it spent during a given time. The extra money can either be used to pay off debts or be invested in other programs.

ING Bank senior economist Nicholas Mapa said the strong spending alongside better revenue collection is a good development for the country.

If the government will be counted on to support sagging economic growth momentum, Mapa said it would only be feasible if accompanied by commensurate gains in revenue collection.

"Revenue collection will be key.