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(PhilStar) MANILA, Philippines — The country’s budget deficit narrowed by 84 percent to P44.4 billion in April from a year ago, the Bureau of the Treasury (Btr) said yesterday.

However, despite the drop in April, the cumulative deficit from January to April was still up by 1.63 percent to P365.9 billion from P360 billion in the same period last year.

The BTR attributed the drop in April’s budget shortfall to the 55 percent growth in revenues as income taxes poured in, coupled with the 27.14 reduction in expenditures coming from a high base at the height of the strict lockdown in the same period last year.

In April, revenues rose to P291.9 billion from a year ago.

From January to April, total collections also increased by nearly four percent to P988.4 billion, with tax revenues growing by 20 percent year-on-year and accounting for 91 percent of total collections for the four-month period.

These comprise collections by the Bureau of Internal Revenue (BIR), Bureau of Customs (BOC), Treasury income, and collections from other offices.

The BIR contributed the bulk of the growth in revenues in April with actual collections of P219 billion, more than double last year’s collections of P90.5 billion.

The BTr attributed this to “the timing of payment of income taxes.”

With its April performance, BIR’s cumulative revenue also improved to P688.7 billion, up by 23.14 percent from January to April 2020 comparable outturn.

Similarly, collections by the BOC in April amounting to P51.8 billion topped last year’s revenue by 50.42 percent, driven by the continued improvement in importation volume.

Year-to-date, the BOC has collected P201 billion, surpassing the P179.7 billion achieved in the first four months of 2020 by 11.81 percent.

Treasury income, however, fell by 84.5 percent in April to P9 billion, coming from the high base effect of last year’s remittances in compliance with RA 11469 or Bayanihan I.

The decline in income from government services and dividends on shares of stocks held by the government was partially offset by the higher income from interest on advances from state-owned firms and government deposits.

Year-to-date, Treasury collection was also lower by 71.46 percent due to the same factors as well as lower national government share from PAGCOR income and interest on advances.

Revenue from other offices such as other non-tax collections including privatization proceeds and fees and charges rose to P10.8 billion, far exceeding last year’s collection by P6.3 billion.

Growth was partly driven by the remittance of the Bases Conversion Development Authority (BCDA) of the disposition proceeds amounting to P2.7 billion as well as the eased restrictions on the operations of government collecting offices versus last year.

Year-to-date collection of P41.9 billion also indicated a 17.35 percent improvement over the same four months last year.

Meanwhile, expenditures for April totaled P336.3 billion, down by 27.14 percent year-on-year owing to the high base effect of releases for COVID-19 emergency response and measures under RA No. 11469 or the Bayanihan to Heal as One Act in 2020.

Nevertheless, year-to-date expenditure of P1. 354.3 trillion was still up by 3.31 percent from last year, with primary spending making up 89 percent of the total disbursement.

April primary expenditure declined to P312.5 billion from last year’s P439.8 billion. Meanwhile, the cumulative primary spending as of end-April was still up by 3.03 percent year-on-year to P1. 204.6 trillion.

Interest payments as a share of total revenues for the month increased by 8.86 percent year-on-year to P23.8 billion largely due to coupon payments for reissued Treasury Bonds.

Netting out interest payments, the national government registered a P20.6 billion primary deficit for April, significantly lower than the primary deficit recorded for the same month last year… Read More

(BusinessWorld) THE Philippine special envoy to the US is planning a public-private initiative to invite US companies to relocate to the Philippines from China.

The initiative will target manufacturing and assembly, logistics, and green energy companies.

“More than raising the level of discourse about this investment opportunity for our country, we will endeavor to chart an efficient roadmap for US companies seeking to do business in the country as guided by the Ease of Doing Business Act,” Special Envoy Jose E.B. Antonio said in a statement Tuesday.

The project will start with virtual conferences to discuss ease of doing business in the country, including reforms to business permit processing, the automation of transactions, and anti-corruption policies.

“We have a young and growing population, hard-working and English-speaking people, relatively low wages and cost of living, and a continuously growing infrastructure,” Mr. Antonio said.

“We will have a more compelling story to tell investors and relocating US firms if we can ensure a smooth and efficient entry and operating process for them.”

The Philippines has been touted as a beneficiary of the relocation of firms from China due to US-China trade tensions, but investors have thus far preferred locations like Vietnam and Thailand.

Organizations supporting the initiative include the US-Philippines Society, American Chamber of Commerce of the Philippines, the Semiconductor and Electronics Industry of the Philippines, Inc., Management Association of the Philippines, and the Harvard Business School Club of the Philippines.

The Trade and Energy departments and the Philippine Economic Zone Authority represent the public sector.

Mr. Antonio is the chairman of the Century Properties Group… Read More

(SimpleMoneyGoals) PRESIDENT Rodrigo R. Duterte has ordered the Department of Agrarian Reform (DAR) to hasten the distribution of government lands to beneficiaries in Negros Oriental in the central part of the Philippines in a bid to quell local insurgency, the Palace said on Tuesday.

Presidential Spokesman Herminio “Harry” L. Roque, Jr. made the statement a day after Mr. Duterte presided over a security meeting in the province, which is part of the Central Visayas Region that also includes Cebu, Bohol, and Siquijor.

“In Negros province, land deprivation is one of the reasons why there is rebellion,” Mr. Roque, speaking in Filipino and citing the President, told a televised news briefing.

The province has a long history of violence triggered by issues of lands rights, poverty, and injustice, according to international group Human Rights Watch.

In July last year, at least 20 people were killed in the province in a string of shooting incidents. Both government forces and communist rebels were implicated in the killings.

Mr. Duterte in 2019 ordered DAR officials to finish the distribution of lands under the Comprehensive Agrarian Reform Program, which was initiated in 1987 by the late President Corazon “Cory” C. Aquino… Read More

(BusinessWorld) SEVERAL Senate committees on Tuesday approved a measure that will create a department that will address concerns of migrant and overseas Filipino workers.

Senator Emmanuel Joel J. Villanueva, chair of the labor committee, endorsed to the plenary Senate Bill No. 2234 or the Department of Migrant Workers and Overseas Filipinos Act.

Other committees that approved the measure were foreign relations, civil service, government reorganization and professional regulation, and finance.

Under the bill, the Philippine Overseas Employment Administration will be constituted as the new department. Seven other agencies will be merged and transferred to the department.

Mr. Villanueva, in his sponsorship speech, said the creation of the new department “does not mean a shift to embracing labor export as a policy but plainly a shift to improve collaborative governance.”

The new department will have an estimated budget of around P1.1 billion, “consistent” with the Department of Budget and Management’s recommendations.

The House of Representatives approved in March 2020 the counterpart House Bill No. 5832.

The bill for the creation of a department for overseas Filipinos was identified by the Legislative-Executive Development Advisory Council as a priority measure targeted to be passed by Dec. 2021… Read More

(GMA News) One of the organizers of a pool party and drinking session in Quezon City has tested positive for COVID-19.

According to Saleema Refran’s report on “24 Oras” on Tuesday, at least 54 people tested positive for COVID-19 after attending the said party in Barangay Nagkaisang Nayon.

Many people attended the street “pool party” on May 9, Mother’s Day, and a drinking and videoke session in a covered court on May 11. Both incidents were considered “superspreader” events by health authorities.

Although one of the organizers admitted they violated health protocols amid the pandemic, she denied that they caused the spread of the virus.

“Inaamin namin na may tugtog kami. Alam namin na lumabag kami sa health protocols. Pagbabayarin namin ‘yon pero ‘yong sasabihin po na dahil sa akin, nakapag-spread ako ng virus? Hindi po totoo po ‘yon. Lahat ng kasama ko sa pool party, asawa ko, anak ko, father-in-law ko, lahat po kahit mga bata, negative po,” she said.

Further, the barangay captain said he and all purok leaders will take action on what happened.

“Every event o mass gathering dito sa barangay ay sisiguraduhing makarating po sa amin para immediately maaksyunan,” he said.

Aside from the barangay chairman and the homeowners association president, authorities will also investigate the commander of the Quezon City Police District Police Station 4 Nagkaisang Nayon Community Precinct 1 for negligence… Read More

(GMA News) The Philippine peso retreated back to the P48:$1 level on Monday, marking its weakest showing in over three weeks.

The local currency lost 12 centavos to close at P48.065:$1 from last Friday’s finish of P47.945:$1. This is the worst performance of the peso since April 30.

Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort attributed Monday’s depreciation to the remarks made by U.S. Federal Reserve officials.

“Some Fed officials, such as Philadelphia Fed President Harker signaled that the Fed should discuss reducing bond purchases sooner than later,” he said.

Ricafort likewise noted that the peso has also weakened amid improving economic outlook as the NCR Plus bubble eased restrictions.

The NCR Plus bubble—Metro Manila, Cavite, Laguna, Rizal, and Bulacan—is under general community quarantine with heightened restrictions until May 31.

“Peso also recently weaker as better economic prospects with the easing of NCR Plus to GCQ (from ECQ) amid new COVID-19 local cases lingering among two-month lows and increased COVID-19 vaccine arrivals and rollouts,” Ricafort said.

The improved outlook signals a pick-up in the economic recovery, as well as in importation activities… Read More

(BusinessWorld) THE GOVERNMENT should allow foreign investors to develop the country’s agriculture sector to ensure food security, according to various groups and experts.

Foreign companies should be able to bring in investments and technology to develop land in the long term, without owning it, George T. Barcelon, who heads the Philippine Exporters Confederation, Inc. (Philexport), said on Sunday.

“What we lack here in the agriculture sector is investment and technology, but for this to come in, we have to lay the groundwork,” he said by telephone, reacting to the proposal by several local groups.

“Our law has to be fair. We protect the sovereign rights of our lands but they can come in over the long term to invest in facilities and know-how,” he added,

Seven industry groups issued a statement on Saturday calling for the opening up of the sector to foreign trade and investments to lower food prices, ensure food security and create more jobs in the countryside.

They said opening up the sector would allow imports to temper rising food prices because of tight local supply. A more predictable flow of imported goods could also boost investments in other related industries, they added.

“The competition local producers face from imported products has the potential of introducing innovations in local agriculture, needed for stronger and competitive growth,” the groups said.

They were the American Chamber of Commerce of the Philippines, Inc., Cold Chain Association of the Philippines, Inc., Federation of Filipino Chinese Chambers of Commerce and Industry, Inc., Fisheries and Aquaculture Board, Foundation for Economic Freedom, Meat Importers and Traders Association and Philippine Association of Flour Millers, Inc.

“Foreign investments in the sector are necessary to intensify and diversify agricultural production and introduce technologies which would enhance the comparative advantage of the sector’s products,” they said.

“We urge authorities to take an inventory of all laws and regulations which discourage entry of foreign investments in the sector, and take away such unnecessary measures,” they added.

Republic Act 7042 or the Foreign Investments Act of 1991 limits foreign participation in certain sectors. It bars foreigners from owning land, mass media and practicing their professions.

The law also limits to 40% foreign participation in the development and use of natural resources and processing of rice and corn.

Mr. Barcelon said easing foreign investment restrictions could also help attract domestic investments. The government should likewise increase its budget for the agriculture sector.

Raul Q. Montemayor, the national manager of the Federation of Free Farmers, begs to disagree.

“They are more interested in giving incentives to foreign investors than to our own farmers,” he said in a Viber message.

“Foreign investors can just leave us when things go bad. Our own farmers will stay here no matter what happens because they have nowhere else to go.”

President Rodrigo R. Duterte has certified as urgent a bill that seeks to amend the Foreign Investments Act. The measure is part of his administration’s priority list to be passed before his term ends next year… Read More

(BusinessWorld) SIX of 10 Filipinos prefer coronavirus vaccines made in the US, according to a Social Weather Stations (SWS) poll.

The poll, conducted on April 28 to May 2, showed 63% of Filipinos would rather get vaccinated with a shot from the US, followed by China (19%), Japan (13%), Australia (13%), the United Kingdom (13%), Canada (12%) and Russia (12%).

When asked which vaccine brand they preferred, Chinese Sinovac Biotech Ltd. topped the list at 39%, followed by Pfizer, Inc. at 32%, AstraZeneca Plc at 22% and Johnson & Johnson at 10%.

The rest obtained single-digit scores: Moderna, Inc. (7%), CureVac N.V. (3%), Sinopharm Group Co .Ltd.(3%), Novavax, Inc. (3%), Sanofi Pasteur (3%) and Russia’s Gamaleya Research Institute of Epidemiology and Microbiology (2%).

Two percent chose all 10 brands, while 19% did not give an answer.

SWS said 76% of those who chose China as their preferred source of vaccines also selected Sinovac’s CoronaVac.

Majority of those who chose the US as their source of vaccines preferred Pfizer (43%) and Sinovac (41%).

Most of the respondents who chose the United Kingdom as their preferred source chose the AstraZeneca shot.

SWS said Sinovac was the most preferred brand in Mindanao (44%) and the Visayas (44%).

It said respondents in Metro Manila equally preferred Sinovac and Pfizer brands (37%).

The government had taken delivery of more than seven million doses of vaccines at the time of the poll — about 5 million doses of CoronaVac, 2.5 million doses from AstraZeneca and 30,000 doses of Sputnik V.

A week later, the government took delivery of its initial 193,000 Pfizer doses. SWS interviewed 1,200 adults for the poll, which had an error margin of ±3 points… Read More