Friday, February 17, 2023

Macroecon 21, Tax revenues, PH outstanding debt

Latest revenue numbers from the cash operations report (COR) of the Bureau of Treasury. Bureau of Customs (BOC) has P789 billion already by November 2022.

Yogi Ruiz became Acting BOC Commissioner last July 25, sworn in by PBBM July 20. So BOC collections from August to November can be attributed to his leadership, it's high, P75 B/month and up. Although BOC collections started rising since March 2022, with record high P83.6 B in July.

Previous record highs in BOC collections were P643.6 B in 2021 and P630.3 B in 2019. The P862 B in 2022 (so December collections were P73 B) was really high. Partly due to the leadership of Yogi Ruiz. Now that he has been replaced by Bienvenido Rubio, the latter must show good performance, high collections of P75 B to P85 B a month.

Meanwhile, outstanding public debt in 2022 was P13.42 trillion, domestic P9.21 trillion + foreign P4.21 trillion. Plus guaranteed debt of P399 billion, total public debt was P13.82 trillion. 

Notice the big jump in public debt in 2020, 2021, 2022, average P2 trillion a year.

Outstanding actual debt + guaranteed debt, it's P8.22 trillion in 2019, P10.25 trillion in 2020, P12.15 trillion in 2021, and P13.82 trillion in 2022.

Three ways to drastically cut this huge debt burden.

1. Cut spending, streamline the bureaucracies, cut some subsidies, reform government pension especially by military and uniformed personnel (MUP).
2. Better tax administration, collect more from existing tax rates; or raise new taxes.
3. Large scale privatization of government corporations, land and other assets.

See also:
Macroecon 19, UK and Canada inflation rates, Biden admin's 'expensive gas is beneficial', July 20, 2022
Macroecon 20, Strong US dollar and how to deal with it, October 06, 2022 
Macroecon 21, Presentation on inflation, gloal and national pictures, November 01, 2022.

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