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Philippines posts budget surplus in April-fin official

Published: 17 May 2009 20:14:19 PST

MANILA, May 18 - The Philippines posted a budget surplus in April as a shortfall in revenue collections by the main tax office was offset by collections from other agencies, a senior finance official said on Monday.

"Yes, it is true," Finance Undersecretary Gil Beltran told Reuters when asked if the government incurred a budget surplus last month.

April is the biggest tax collection month, so the budget figures are closely watched by financial markets as an indication of how the full-year budget will turn out.

The government is due to announce April's fiscal budget balance at 0600 GMT.

Bureau of Internal Revenue Commissioner Sixto Esquivias said last week his office did not meet its tax collection target of 100 billion pesos ($2.1 billion) in April, when the annual deadline for income tax payments falls due. [ID:nMAN152055]

Beltran said other revenue collection agencies, including the Bureau of Customs and the Bureau of Treasury, made up the shortfall, but did not give details.

Manila had a budget shortfall of 119.7 billion pesos in the first quarter of the year, bigger than the 110 billion pesos target, as the government accelerated spending to boost economic growth.