TRAIN raises gov’t budget surplus in Jan.

Government revenues surpassed the growth pace of public spending in the first month of the year following the implementation of the first tax reform law, the Bureau of the Treasury reported.

Data from the Treasury bureau showed yesterday that the Duterte administration posted a budget surplus of R10.2 billion in January this year, more than a threefold increase compared with R2.2 billion last year.

State revenues jumped 19 percent during the month to R238.9 billion from R200.3 billion a year before. Of that amount, tax collections rose 18 percent to R217.8 billion, while non-taxes accelerated by 35 percent to 21.1 billion.

In January, the Bureau of Internal Revenue raised R175.6 billion, an increase of 19 percent year-on-year, while the Bureau of Customs registered a 14 percent growth from last year to R40.8 billion.

Other offices, meanwhile, collected R14.4 billion, up 52 percent year-on-year, while the Treasury bureau raised R8.1 percent during the month, a slight increase compared with R8 billion last year.

“All major collecting agencies of the government posted positive year-on-year growth, leading to higher total revenues,” the Treasury said. “The growth was mainly driven by the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) which took effect on January 1, 2018.”

Government expenditures, on the other hand, increased by 15 percent in January to R228.7 billion from R198.1 billion. Of that amount, interest payments cornered R43.5 billion, up by three percent from R42.4 billion in 2017.

Other disbursements, meanwhile, amounted to R185.2 billion in January, up by 19 percent compared with R155.7 billion a year before.

“Ramped up infrastructure spending as well as the implementation of the third tranche of compensation adjustment for government employees contributed to the month’s performance,” the Treasury said.