The Department of Finance (DoF) also revised 2007’s full-year deficit to P12.4 billion, which is P3 billion more than what was initially reported last January of P9.4 billion.

The programmed deficit last year was P63 billion. The 2007 budget shortfall is equivalent to 0.2 percent of gross domestic product.

Finance Secretary Margarito B. Teves said the adjusted higher deficit was due to higher spending on infrastructure and social services despite a "slight improvement" in the government collection of taxes for the period.

For January total revenues amounted to P87 billion, up by 19.7 percent from last year’s collection of P72.7 billion. The Bureau of Revenues (BIR) accounted for P56.7 billion, 14 percent higher than last year’s P49.7 billion.

The Bureau of Customs (BoC) collected P14.7 billion from P11.8 billion. On the other hand, the Bureau of the Treasury (BTr)’s collection dropped to 4.6 billion from P6.2 billion due to lower investment income following the decline in interest rates. Revenues from "other" offices amounted to P5 billion, more than double compared to 2007. 

Total expenditures in January amounted to P100.9 billion, lower by 1.4 percent compared with the P102.4 billion registered during the same month last year. Interest payments fell by seven percent to P30 billion from P32.3 billion same month in 2006.

According to Teves, "although we had a good start to the year, we need to do better in the coming months. We have to prepare for the possible adverse impact of the continuing US slowdown on the domestic economy and the world."

"In the meantime," he added, "we will remain focused on improving revenues to raise the needed resources to fully finance our expenditures and support sustainable economic growth."

The DOF said the 2007 deficit is the smallest since recording started in 1986. Last year’s deficit is also the smallest deficit since the government posted continuous deficits from 1998.