RP revises down 2007 public sector surplus


Posted at Jun 26 2008 04:27 PM | Updated as of Jun 27 2008 12:27 AM


The Philippines revised down its 2007 public sector surplus to P36.4 billion ($818 million) on Thursday largely due to losses incurred by the central bank as it sought to slow the peso's rise against the dollar last year.

The overall surplus was equivalent to 0.5 percent of gross domestic product, better than the government's forecast deficit of P21.8 billion for the year but less than half a previously announced 2007 public sector surplus of P97 billion.

The Philippines had a public sector surplus of P10.98 billion, or 0.2 percent of GDP, in 2006.

Deficits from the central government and the central bank were somewhat offset by surpluses from local governments, state financial institutions and the 14 government corporations monitored for the report, the Finance department said in a statement.

The central bank incurred a loss on foreign exchange fluctuations amounting to P113.7 billion in 2007, the statement said.

A central bank official earlier said the monetary authority bought a total $15 billion from the market last year to dampen the rise in the peso, which gained about 19 percent against the dollar in 2007, the sharpest rise in the region.

The central bank posted a deficit of P89.2 billion last year, the first deficit in the monetary authority's 14 year history.

Monitored government corporations had a combined surplus of P60.86 billion in 2007 against a deficit of P1 billion in 2006. Pension funds and social security agencies recorded a surplus of P41.7 billion while local governments had a surplus of P24.386 billion.

For 2008, the government has forecast a surplus of P56.8 billion or 0.8 percent of GDP.