Government's Financing Program

Familiarization with accounts used by Government in its Financing Program is necessary for certain statements to lend itself to meaningful analyses: Some such accounts follow:


1. REVENUES
of which, BTR Income

2. EXPENDITURES
of which, interest payments

3. SURPLUS/(DEFICIT)

4. FINANCING
External (NET)
External (Gross)
Project Loans
Program Loans
Bonds & Other Inflows
Less: Amortization

Domestic (NET)
Domestic ( Gross )
Treasury Bills
Fixed Rate Treasury Bonds
Retail Treasury Bonds
USDOllar Linked Notes
Fixed Rate Promissory Notes
Fixed Term Deposits
Less: Amortization

5. CHANGE IN CASH
Budgetary
Non-Budgetary
National Government Transactions
Central Bank Restructuring



Explanations:

1. Revenues come from tax and non-tax accounts. Chief contributors for tax revenues are BIR and Customs. The Bureau of the Treasury record in part the non-tax revenues such as interest incomes.

2. Expenditures are those intended for the regular operations of government . These are mainly for salaries and a little capital expenditures. It is important to keep the process of incurring government expenditures as well as its funding.

Simply, the process involves the Department of Budget that issues an NCA, forwards the same to the BTR . The latter funds the NCA through a modified disbursement System and the funds are remitted via a government financila institution-usually the Land Bank. (The entire process may sound so simple but would require an entirely new set of discussions for here lies many of the answers to some questions raised regarding National Government's handling of its finances and data releases).

3. SURPLUS/(DEFICIT)

Since the late 90's, we have recorded a chronic deficit. In part , exacerbated by a financing program that did not seem mindful of the debt stock's maturify profile, especially for the domestic debt stock.

4. Financing (the deficit) was by accessing the external market and the internal market. This exercise is also worth an entirely separate discussion.

5. CHANGE IN CASH. Accounted for by budgetary and non-budgetary accounts. The latter is what is otherwise known as below the line items.

In suceeding postings, I shall discuss the above accounts with the attendant numbers in greater detail .

Transparency: a Pillar of Governance

Starting July, I shall begin presenting the accounts that are part of the cash program of the government and open discussion on select items or activities that underlie these accounts . For easy reference of the readers, these data are found in the Bureau of the Treasury's statistical series published in BTr's website. It is hoped that with this forum, we can learn and start to pitch in in the country's efforts at addressing the debt problem .It can also serve to surface structural practices or deficiencies that may be reviewed/amended or ,possibly, eliminated.