## 1phlea2021004 - Section 1

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---

### Summary of mission outcomes and priority recommendations
- A remote follow-up technical assistance (TA) mission on government finance statistics (GFS) and public sector debt statistics (PSDS) was conducted with the Department of Finance (DOF) during October 19–27, 2020.
- Mission scope:
  - review adoption of a cash treatment of the Government Service Insurance Scheme (GSIS);
  - verify changes in GFS general government sector (GGS) revenue and expenses in the Statement of General Government Operations (SGGO) for 2012 to 2016;
  - review GFS GGS data for 2017 to 2019 and quarterly GFS GGS data for 2019;
  - review improvements to the DOF Official Public Sector Debt (OPSD) and recommend further changes including incorporation of domestic debt into the QPSD return prepared by Bangko Sentral ng Pilipinas (BSP).
- Priority recommendations (Target Date — Priority Recommendation — Responsible Institutions):
  - Q1/2021 — Provide updated annual GGS GFS data for inclusion in the GFS Yearbook (GFSY). — DOF
  - Q2/2021 — Improve accuracy of the external debt component of the OPSD. — DOF
  - Q3/2021 — Include Philippines domestic debt in the QPSD. — BSP/DOF
  - Q3/2021 — Align sectorization between OPSD and QPSD. — BSP
  - Q3/2021 — Commence regular production of quarterly GGS GFS data. — DOF

### Detailed technical assessment and recommendations — action plan highlights
- Target Completion Date: Q1/2021
  - Outcome: Revised GFS GGS data for 2012 to 2016 and recently completed GFS GGS data for 2017 to 2019, for GGS and component sectors is authorized by DOF for inclusion in the GFSY.
- Target Completion Date: Q2/2021
  - Action: DOF source external debt for the government sectors compiled in the OPSD from the BSP and derive the domestic debt component as a balance to the total debt of each sector.
- Target Completion Date: Q3/2021
  - Actions/Milestones:
    - BSP continue to populate the QPSD tables for external debt and provide them to DOF for the inclusion of domestic debt.
    - Philippines National Railway (PNR) and National Irrigation Authority (NIA) included in external GGS debt reported by BSP in tables 1 and 1.1 and removed from QPSD Table 2, Public Non-Financial Corporations debt.
    - Regular provision of quarterly GFS GGS data to commence.

### A. Review of the DOF Official Public Sector Debt (OPSD) — key findings and recommendations
- Current OPSD practice:
  - FPPO of DOF produces the OPSD, published on the DOF website, identifying domestic and external debt with instrument coverage at the D1 instrument coverage level for different national institutional units, except for BSP which has wider instrument coverage.
  - Note on D1: D1 instrument coverage includes liabilities under debt securities and loans.
- Recommendation: DOF should source external Bureau of the Treasury (BTr) debt for the OPSD from the BSP to align external/domestic split with residency-based externality as reported by BSP. This change will not alter total debt, only the domestic/external split.
- GOCCs and GFIs:
  - OPSD now reports debt of Government Owned and Controlled Corporations (GOCC) at the D1 level as recommended in 2016.
  - Two GOCCs (PNR and NIA) are separately identified in the OPSD and included in general government debt as recommended by the 2019 GFS mission.
  - Recommendation: DOF should source external GOCC debt for the OPSD from the BSP and derive GOCC domestic debt as a balance to total GOCC debt. Previously reported GOCC deposits and other accounts payable can be reported as memorandum items for continuity.
  - Recommendation: DOF should source external Government Financial Institutions (GFI) debt for the OPSD from the BSP with GFI domestic debt derived as a balance to total GFI debt.
- Inclusion of SDRs:
  - OPSD now includes SDRs in BSP debt. All liabilities of the BSP are included except: Secured Settlement Account, Term Deposit Facility, Derivatives Liability, Derivative Instruments in a Loss Position and Revaluation of International Reserves.
- Local government units (LGUs):
  - There are 1,715 local government units (LGUs) incurring domestic debt at the D1 level; municipalities and cities subdivided into 45,000 Barangays.
  - Joint Memorandum Circular 2018-1 (July 12, 2018) extended SRE data collection coverage to include Barangays commencing with 2019 annual data. Collecting Barangay debt is ambitious but will improve GGS data if extended.

### B. Review of Philippines contributions to the QPSD — compilation and recommended inclusions
- Current BSP QPSD contributions: BSP populates tables for external debt only:
  - Table 1 Gross General Government Debt (central government only)
  - Table 1.1 Gross Central Government Debt
  - Table 2 Gross Non-Financial Public Corporations Debt
  - Table 3 Gross Financial Public Corporations Debt
  - Table 4 Total Gross Public Sector Debt (sum of above)
- Recommendations:
  - Include PNR and NIA in external general government debt reported by BSP in Tables 1 and 1.1 and remove them from QPSD Table 2 Non-Financial Corporations debt.
  - QPSD should include OPSD domestic general government debt. Proposed General Government Interest Bearing Domestic Debt 2019 components:
    - National Government
    - less debt held by Bond Sinking Fund (BSF)
    - plus NIA and PNR
    - plus Local Government
    - Total
    - less Intrasectoral holdings:
      - National government debt held by SSIs
      - National government debt held by LGUs
      - LGUs loan held by MDFO
    - Consolidated general government domestic debt
  - QPSD Table 2 should include OPSD GOCC domestic debt (excluding PNR and NIA domestic debt classified as GGS).
  - QPSD Table 3 should include OPSD domestic GFI debt.
  - For QPSD Table 4 (aggregate), inter-sector holdings of domestic debt identified in the OPSD should be included. Items highlighted for inclusion:
    - National government securities held by GFIs and BSP
    - National government deposits at BSP
    - SSI's deposits held by BSP
    - GFI's deposits at BSP
    - GOCC deposits at BSP
    - GOCC loans/other debt held by BSP
    - GOCC loans/other debt held by GFIs
    - GFIs loans/other debt held by BSP
    - Local governments debt held by GFIs
- Practical step: BSP should continue to populate QPSD external debt tables and provide them to DOF for inclusion of OPSD domestic debt.

### C. PSDS workplan and instrument coverage gaps
- Heatmap results: Good OPSD coverage of D1 level instruments (loans and securities). A key omission is pension liabilities of social security institutions (SSIs).
- Recommendation: Record pension liabilities of SSIs as a memorandum item in OPSD given OPSD’s D1-level compilation objective.
- Workplan priorities:
  - Report additional debt instruments as memorandum items.
  - Include Philippines domestic debt in QPSD.
  - Expand coverage of GFI debt: DOF Corporate Affairs Group (CAG) monitors only three depository GFIs while BSP covers six depository and six insurance GFIs; expand DOF monitoring coverage.

### D. Quarterly General Government GFS data — data sources and feasibility
- Quarterly data sources available:
  - Central Government: BTr produces a monthly Cash Operations Report (COR) which is converted to a GFS basis for monthly and annual reporting to the IMF. The GFS-compliant statement includes more detailed expenditure and revenue, separation of compensation of employees and investments in non-financial assets obtained from the Department of Budget and Management after COR publication, records CB-BOL interest as revenue, and excludes tax expenditures.
  - Extrabudgetary units and SSIs: CAG collects financial data on monitored GOCCs (including four SSIs) annually and within-year. PNR and NIA are classified as extrabudgetary general government units in the SGGO.
  - Local Government: Bureau of Local Government Finances (BLGF) collects financial data on local government units annually and within-year.
- Feasibility: The 2019 GFS mission determined compilation of quarterly GGS data is possible using the same methodology as the annual SGGO with a longer lag to include local government data.
- DOF produced an SGGO for each quarter of 2019 (including comparison to the annual SGGO for 2019); mission reviewed and recommended that regular provision of quarterly GFS GGS data commence.

### E. Annual General Government GFS data — GSIS treatment and data revisions
- DOF introduced a cash treatment of the GSIS resulting in revisions to GFS GGS data for 2012 to 2016. The mission verified the change in GFS GGS revenue and expenses in the SGGO for 2012 to 2016.
- GFS GGS data for 2017 to 2019 were provided by DOF, reviewed by the mission, and suggested improvements were incorporated by DOF.
- Recommendation: Revised GFS GGS data for 2012 to 2016 and recently completed GFS GGS data for 2017 to 2019 for GGS and component sectors be authorized by DOF for inclusion in the GFS Yearbook (GFSY).

### F. Comparison of DOF (SGGO) and APD GGS estimates — table highlights and differences
- Comparison table excerpts (GGS values for Revenue, Current expenditure, Capital expenditure, Net lending/borrowing) — values as presented:
  - GGS 2012
    - SGGO Revenue 1,935 — APD 1,966 — Diff -31
    - SGGO Current expenditure 1,680 — APD 1,614 — Diff 66
    - SGGO Capital expenditure 282 — APD 384 — Diff -102
    - SGGO Net lending/borrowing -27 — APD -33 — Diff 5
  - GGS 2013
    - SGGO Revenue 2,135 — APD 2,175 — Diff -39
    - SGGO Current expenditure 1,810 — APD 1,769 — Diff 41
    - SGGO Capital expenditure 316 — APD 383 — Diff -67
    - SGGO Net lending/borrowing 10 — APD 23 — Diff -13
  - GGS 2014
    - SGGO Revenue 2,400 — APD 2,395 — Diff 5
    - SGGO Current expenditure 1,936 — APD 1,893 — Diff 43
    - SGGO Capital expenditure 321 — APD 393 — Diff -72
    - SGGO Net lending/borrowing 143 — APD 109 — Diff 34
  - GGS 2015
    - SGGO Revenue 2,598 — APD 2,581 — Diff 17
    - SGGO Current expenditure 2,134 — APD 2,013 — Diff 121
    - SGGO Capital expenditure 405 — APD 487 — Diff -82
    - SGGO Net lending/borrowing 59 — APD 82 — Diff -22
  - GGS 2016
    - SGGO Revenue 2,790 — APD 2,769 — Diff 21
    - SGGO Current expenditure 2,302 — APD 2,152 — Diff 150
    - SGGO Capital expenditure 571 — APD 670 — Diff -100
    - SGGO Net lending/borrowing -83 — APD -53 — Diff -30
  - GGS 2017
    - SGGO Revenue 3,133 — APD 3,094 — Diff 39
    - SGGO Current expenditure 2,568 — APD 2,388 — Diff 180
    - SGGO Capital expenditure 653 — APD 768 — Diff -115
    - SGGO Net lending/borrowing -88 — APD -62 — Diff -26
  - GGS 2018
    - SGGO Revenue 3,582 — APD 3,525 — Diff 58
    - SGGO Current expenditure 2,898 — APD 2,769 — Diff 129
    - SGGO Capital expenditure 909 — APD 1,039 — Diff -130
    - SGGO Net lending/borrowing -225 — APD -284 — Diff 59
  - GGS 2019
    - SGGO Revenue 3,991 — APD 3,884 — Diff 107
    - SGGO Current expenditure 3,318 — APD 3,110 — Diff 208
    - SGGO Capital expenditure 1,000 — APD 1,122 — Diff -123
    - SGGO Net lending/borrowing -326 — APD -348 — Diff 21
- Main differences identified:
  - APD LGU taxes were higher than the SGGO.
  - APD National Government current expenditure were lower than the SGGO.
  - APD National Government capital expenditure was higher than the SGGO.

### G. DBCC Approval of Mission Recommendations and key statistical treatments
- DBCC approval:
  - Any changes to statistical data must be approved by the Development Budget Coordination Committee (DBCC).
  - The mission identifies materials and justifications that can be provided to the DBCC to support statistical changes implemented or recommended by the mission.
- Key findings and recommended statistical treatments:
  - GSIS sectorization and recording:
    - In the 2018 sectorization workshop it was decided that GSIS social contributions be recorded as an increase in a liability, and payment of pensions a reduction in liability consistent with GFS.
    - GSIS is predominantly cash-based, and a detailed review is required to determine the appropriate sectorization of GSIS and whether its non-pension component can be separated.
    - Until that review is completed, the 2019 GFS mission recommended GSIS social contributions be recorded as revenue and the pension benefits recorded as expense, consistent with the three other SSIs.
    - This treatment has been reflected in the SGGO back to 2012.
  - External debt alignment:
    - The BSP compiles more accurate external debt numbers than the OPSD because they adjust BTr bonds issued in foreign currencies for domestic holdings, and their data is more comprehensive because all entities need to seek BSP approval before borrowing externally.
    - Recommendation: OPSD should align with external debt reported by the BSP to the QPSD. This will not change total debt reported in the OPSD, just the split between domestic and external.
  - GOCC sectorization in QPSD:
    - The 2018 sectorization workshop decided that two GOCCs, PNR and NIA, be treated as general government units because they are largely non-market operators.
    - BSP still includes these two GOCCs on the Public Non-Financial Corporation table in the QPSD but should align with the OPSD and include the debt of these two entities in the QPSD GGS table.
  - Data provision and publication enhancements:
    - Currently, BTr provides annual and quarterly GFS data to the IMF but data provision should be expanded to GGS data compiled in the SGGO.
    - Currently, DOF only publishes summary GFS GGS data from the SGGO on its website, namely revenue, expenses, and net operating balance but the publication of more detailed GGS aggregates should be considered.

### H. Officials Met During the Mission
- Officials and institutions met (as reported):
  - Assistant Secretary Soledad Emilia J. Cruz — CAG-DOF
  - Assistant Secretary Ma. Teresa S. Habitan — FPPO-DOF
  - Rommel A. Rojales — DOF-FPPO
  - Vernadette V. Ilagan — DOF-FPPO
  - Gwendelyn M. Manongdo — DOF-FPPO
  - Vergel John D. Himpisao — DOF-FPPO
  - Eric C. Tipgos — DOF-FPPO
  - Ma. Lourdes L. Quintos — DOF-FPPO
  - Andrea Felice C. Quinial — DOF-FPPO
  - Ma. Pamela P. Quizon — DOF-BLGF
  - Jericho Perez — DOF-BLGF
  - Mary Ann U. Rada — DOF-BLGF
  - Lara T. Aduna — BTr
  - Elizabeth P. Awayan — BTr
  - Jacquiline P. Santiago — BTr
  - Joanna Castillo — DOF-CAG
  - Precious Alzate — DOF-CAG
  - Cyril Zausa — DOF-CAG
  - Roselyn Salagoste — DOF-CAG
  - Maria Francesca D. Grabador — BSP
  - Marie Belarmine F. Pagalunan — BSP
  - Marie Rowenna R. Dayrit — BSP
  - Ma. Vernadette D Gerola — BSP
  - Joana Marie B. Trinidad — BSP
  - Camilo U. Coloma — BSP
  - Cecilia D. Reyes — BSP
  - Roberto B. Quintos — BSP
  - Ana May C. Magsino — BSP
  - Ma. Rosario N. Delena — BSP

*Source: IMF Technical Assistance Report — Philippines, Report on Government Finance Statistics Mission (October 19–27, 2020), Section 1 (October 2021).*

### Section 1

### 1phlea2021004 - Section 1

### Summary of mission outcomes and priority recommendations
- A remote follow-up technical assistance (TA) mission on government finance statistics (GFS) and public sector debt statistics (PSDS) was conducted with the Department of Finance (DOF) during October 19–27, 2020.
- Mission scope: review adoption of a cash treatment of the Government Service Insurance Scheme (GSIS); verify changes in GFS general government sector (GGS) revenue and expenses in the Statement of General Government Operations (SGGO) for 2012 to 2016; review GFS GGS data for 2017 to 2019 and quarterly GFS GGS data for 2019; review improvements to the DOF Official Public Sector Debt (OPSD) and recommend further changes including incorporation of domestic debt into the QPSD return prepared by Bangko Sentral ng Pilipinas (BSP).
- Priority recommendations (Target Date — Priority Recommendation — Responsible Institutions):
  - Q1/2021 — Provide updated annual GGS GFS data for inclusion in the GFS Yearbook (GFSY). — DOF
  - Q2/2021 — Improve accuracy of the external debt component of the OPSD. — DOF
  - Q3/2021 — Include Philippines domestic debt in the QPSD. — BSP/DOF
  - Q3/2021 — Align sectorization between OPSD and QPSD. — BSP
  - Q3/2021 — Commence regular production of quarterly GGS GFS data. — DOF

### Detailed technical assessment and recommendations — action plan highlights
- Target Completion Date: Q1/2021
  - Outcome: Revised GFS GGS data for 2012 to 2016 and recently completed GFS GGS data for 2017 to 2019, for GGS and component sectors is authorized by DOF for inclusion in the GFSY.
- Target Completion Date: Q2/2021
  - Action: DOF source external debt for the government sectors compiled in the OPSD from the BSP and derive the domestic debt component as a balance to the total debt of each sector.
- Target Completion Date: Q3/2021
  - Actions/Milestones:
    - BSP continue to populate the QPSD tables for external debt and provide them to DOF for the inclusion of domestic debt.
    - Philippines National Railway (PNR) and National Irrigation Authority (NIA) included in external GGS debt reported by BSP in tables 1 and 1.1 and removed from QPSD Table 2, Public Non-Financial Corporations debt.
    - Regular provision of quarterly GFS GGS data to commence.

### A. Review of the DOF Official Public Sector Debt (OPSD) — key findings and recommendations
- Current OPSD practice:
  - FPPO of DOF produces the OPSD, published on the DOF website, identifying domestic and external debt with instrument coverage at the D1 instrument coverage level for different national institutional units, except for BSP which has wider instrument coverage.
  - Note on D1: D1 instrument coverage includes liabilities under debt securities and loans.
- Recommendation: DOF should source external Bureau of the Treasury (BTr) debt for the OPSD from the BSP to align external/domestic split with residency-based externality as reported by BSP. This change will not alter total debt, only the domestic/external split.
- GOCCs and GFIs:
  - OPSD now reports debt of Government Owned and Controlled Corporations (GOCC) at the D1 level as recommended in 2016.
  - Two GOCCs (PNR and NIA) are separately identified in the OPSD and included in general government debt as recommended by the 2019 GFS mission.
  - Recommendation: DOF should source external GOCC debt for the OPSD from the BSP and derive GOCC domestic debt as a balance to total GOCC debt. Previously reported GOCC deposits and other accounts payable can be reported as memorandum items for continuity.
  - Recommendation: DOF should source external Government Financial Institutions (GFI) debt for the OPSD from the BSP with GFI domestic debt derived as a balance to total GFI debt.
- Inclusion of SDRs:
  - OPSD now includes SDRs in BSP debt. All liabilities of the BSP are included except: Secured Settlement Account, Term Deposit Facility, Derivatives Liability, Derivative Instruments in a Loss Position and Revaluation of International Reserves.
- Local government units (LGUs):
  - There are 1,715 local government units (LGUs) incurring domestic debt at the D1 level; municipalities and cities subdivided into 45,000 Barangays.
  - Joint Memorandum Circular 2018-1 (July 12, 2018) extended SRE data collection coverage to include Barangays commencing with 2019 annual data. Collecting Barangay debt is ambitious but will improve GGS data if extended.

### B. Review of Philippines contributions to the QPSD — compilation and recommended inclusions
- Current BSP QPSD contributions: BSP populates tables for external debt only:
  - Table 1 Gross General Government Debt (central government only)
  - Table 1.1 Gross Central Government Debt
  - Table 2 Gross Non-Financial Public Corporations Debt
  - Table 3 Gross Financial Public Corporations Debt
  - Table 4 Total Gross Public Sector Debt (sum of above)
- Recommendation: Include PNR and NIA in external general government debt reported by BSP in Tables 1 and 1.1 and remove them from QPSD Table 2 Non-Financial Corporations debt.
- Recommendation: QPSD should include OPSD domestic general government debt. Proposed General Government Interest Bearing Domestic Debt 2019 components (items listed in source):
  - National Government
  - less debt held by Bond Sinking Fund (BSF)
  - plus NIA and PNR
  - plus Local Government
  - Total
  - less Intrasectoral holdings:
    - National government debt held by SSIs
    - National government debt held by LGUs
    - LGUs loan held by MDFO
  - Consolidated general government domestic debt
- Recommendation: QPSD Table 2 should include OPSD GOCC domestic debt (excluding PNR and NIA domestic debt classified as GGS).
- Recommendation: QPSD Table 3 should include OPSD domestic GFI debt.
- Recommendation: For QPSD Table 4 (aggregate), inter-sector holdings of domestic debt identified in the OPSD should be included. Items highlighted for inclusion:
  - National government securities held by GFIs and BSP
  - National government deposits at BSP
  - SSI's deposits held by BSP
  - GFI's deposits at BSP
  - GOCC deposits at BSP
  - GOCC loans/other debt held by BSP
  - GOCC loans/other debt held by GFIs
  - GFIs loans/other debt held by BSP
  - Local governments debt held by GFIs
- Practical step: BSP should continue to populate QPSD external debt tables and provide them to DOF for inclusion of OPSD domestic debt.

### C. PSDS workplan and instrument coverage gaps
- Heatmap results: Good OPSD coverage of D1 level instruments (loans and securities). A key omission is pension liabilities of social security institutions (SSIs).
- Recommendation: Record pension liabilities of SSIs as a memorandum item in OPSD given OPSD’s D1-level compilation objective.
- Workplan priorities:
  - Report additional debt instruments as memorandum items.
  - Include Philippines domestic debt in QPSD.
  - Expand coverage of GFI debt: DOF Corporate Affairs Group (CAG) monitors only three depository GFIs while BSP covers six depository and six insurance GFIs; expand DOF monitoring coverage.

### D. Quarterly General Government GFS data — data sources and feasibility
- Quarterly data sources available:
  - Central Government: BTr produces a monthly Cash Operations Report (COR) which is converted to a GFS basis for monthly and annual reporting to the IMF. The GFS-compliant statement includes more detailed expenditure and revenue, separation of compensation of employees and investments in non-financial assets obtained from the Department of Budget and Management after COR publication, records CB-BOL interest as revenue, and excludes tax expenditures.
  - Extrabudgetary units and SSIs: CAG collects financial data on monitored GOCCs (including four SSIs) annually and within-year. PNR and NIA are classified as extrabudgetary general government units in the SGGO.
  - Local Government: Bureau of Local Government Finances (BLGF) collects financial data on local government units annually and within-year.
- Feasibility: The 2019 GFS mission determined compilation of quarterly GGS data is possible using the same methodology as the annual SGGO with a longer lag to include local government data.
- DOF produced an SGGO for each quarter of 2019 (including comparison to the annual SGGO for 2019); mission reviewed and recommended that regular provision of quarterly GFS GGS data commence.

### E. Annual General Government GFS data — GSIS treatment and data revisions
- DOF introduced a cash treatment of the GSIS resulting in revisions to GFS GGS data for 2012 to 2016. The mission verified the change in GFS GGS revenue and expenses in the SGGO for 2012 to 2016.
- GFS GGS data for 2017 to 2019 were provided by DOF, reviewed by the mission, and suggested improvements were incorporated by DOF.
- Recommendation: Revised GFS GGS data for 2012 to 2016 and recently completed GFS GGS data for 2017 to 2019 for GGS and component sectors be authorized by DOF for inclusion in the GFS Yearbook (GFSY).

### F. Comparison of DOF (SGGO) and APD GGS estimates — table highlights and differences
- Comparison table excerpts (GGS values for Revenue, Current expenditure, Capital expenditure, Net lending/borrowing). Values as presented:

  - GGS 2012
    - SGGO Revenue 1,935 — APD 1,966 — Diff -31
    - SGGO Current expenditure 1,680 — APD 1,614 — Diff 66
    - SGGO Capital expenditure 282 — APD 384 — Diff -102
    - SGGO Net lending/borrowing -27 — APD -33 — Diff 5

  - GGS 2013
    - SGGO Revenue 2,135 — APD 2,175 — Diff -39
    - SGGO Current expenditure 1,810 — APD 1,769 — Diff 41
    - SGGO Capital expenditure 316 — APD 383 — Diff -67
    - SGGO Net lending/borrowing 10 — APD 23 — Diff -13

  - GGS 2014
    - SGGO Revenue 2,400 — APD 2,395 — Diff 5
    - SGGO Current expenditure 1,936 — APD 1,893 — Diff 43
    - SGGO Capital expenditure 321 — APD 393 — Diff -72
    - SGGO Net lending/borrowing 143 — APD 109 — Diff 34

  - GGS 2015
    - SGGO Revenue 2,598 — APD 2,581 — Diff 17
    - SGGO Current expenditure 2,134 — APD 2,013 — Diff 121
    - SGGO Capital expenditure 405 — APD 487 — Diff -82
    - SGGO Net lending/borrowing 59 — APD 82 — Diff -22

  - GGS 2016
    - SGGO Revenue 2,790 — APD 2,769 — Diff 21
    - SGGO Current expenditure 2,302 — APD 2,152 — Diff 150
    - SGGO Capital expenditure 571 — APD 670 — Diff -100
    - SGGO Net lending/borrowing -83 — APD -53 — Diff -30

  - GGS 2017
    - SGGO Revenue 3,133 — APD 3,094 — Diff 39
    - SGGO Current expenditure 2,568 — APD 2,388 — Diff 180
    - SGGO Capital expenditure 653 — APD 768 — Diff -115
    - SGGO Net lending/borrowing -88 — APD -62 — Diff -26

  - GGS 2018
    - SGGO Revenue 3,582 — APD 3,525 — Diff 58
    - SGGO Current expenditure 2,898 — APD 2,769 — Diff 129
    - SGGO Capital expenditure 909 — APD 1,039 — Diff -130
    - SGGO Net lending/borrowing -225 — APD -284 — Diff 59

  - GGS 2019
    - SGGO Revenue 3,991 — APD 3,884 — Diff 107
    - SGGO Current expenditure 3,318 — APD 3,110 — Diff 208
    - SGGO Capital expenditure 1,000 — APD 1,122 — Diff -123
    - SGGO Net lending/borrowing -326 — APD -348 — Diff 21

- Main differences identified:
  - APD LGU taxes were higher than the SGGO.
  - APD National Government current expenditure were lower than the SGGO.
  - APD National Government capital expenditure was higher than the SGGO.

*Source: IMF Technical Assistance Report — Philippines, Report on Government Finance Statistics Mission (October 19–27, 2020), Section 1 (October 2021).*

### Section 2

### Section 2

### G. DBCC Approval of Mission Recommendations
- It is a requirement that any changes to statistical data be approved by the Development Budget Coordination Committee (DBCC).
- The mission identifies materials and justifications that can be provided to the DBCC to support statistical changes implemented or recommended by the mission.

### Key findings and recommended statistical treatments
- GSIS sectorization and recording
  - In the 2018 sectorization workshop it was decided that GSIS social contributions be recorded as an increase in a liability, and payment of pensions a reduction in liability consistent with GFS.
  - GSIS is predominantly cash-based, and a detailed review is required to determine the appropriate sectorization of GSIS and whether its non-pension component can be separated.
  - Until that review is completed, the 2019 GFS mission recommended GSIS social contributions be recorded as revenue and the pension benefits recorded as expense, consistent with the three other SSIs.
  - This treatment has been reflected in the SGGO back to 2012.

- External debt alignment
  - The BSP compiles more accurate external debt numbers than the OPSD because they adjust BTr bonds issued in foreign currencies for domestic holdings, and their data is more comprehensive because all entities need to seek BSP approval before borrowing externally.
  - Recommendation: OPSD should align with external debt reported by the BSP to the QPSD. This will not change total debt reported in the OPSD, just the split between domestic and external.

- GOCC sectorization in QPSD
  - The 2018 sectorization workshop decided that two GOCCs, PNR and NIA, be treated as general government units because they are largely non-market operators.
  - BSP still includes these two GOCCs on the Public Non-Financial Corporation table in the QPSD but should align with the OPSD and include the debt of these two entities in the QPSD GGS table.

- Data provision and publication enhancements
  - Currently, BTr provides annual and quarterly GFS data to the IMF but data provision should be expanded to GGS data compiled in the SGGO.
  - Currently, DOF only publishes summary GFS GGS data from the SGGO on its website, namely revenue, expenses, and net operating balance but the publication of more detailed GGS aggregates should be considered.

### H. Officials Met During the Mission
- List of officials and institutions met (as reported)
  - Assistant Secretary Soledad Emilia J. Cruz — CAG-DOF
  - Assistant Secretary Ma. Teresa S. Habitan — FPPO-DOF
  - Rommel A. Rojales — DOF-FPPO
  - Vernadette V. Ilagan — DOF-FPPO
  - Gwendelyn M. Manongdo — DOF-FPPO
  - Vergel John D. Himpisao — DOF-FPPO
  - Eric C. Tipgos — DOF-FPPO
  - Ma. Lourdes L. Quintos — DOF-FPPO
  - Andrea Felice C. Quinial — DOF-FPPO
  - Ma. Pamela P. Quizon — DOF-BLGF
  - Jericho Perez — DOF-BLGF
  - Mary Ann U. Rada — DOF-BLGF
  - Lara T. Aduna — BTr
  - Elizabeth P. Awayan — BTr
  - Jacquiline P. Santiago — BTr
  - Joanna Castillo — DOF-CAG
  - Precious Alzate — DOF-CAG
  - Cyril Zausa — DOF-CAG
  - Roselyn Salagoste — DOF-CAG
  - Maria Francesca D. Grabador — BSP
  - Marie Belarmine F. Pagalunan — BSP
  - Marie Rowenna R. Dayrit — BSP
  - Ma. Vernadette D Gerola — BSP
  - Joana Marie B. Trinidad — BSP
  - Camilo U. Coloma — BSP
  - Cecilia D. Reyes — BSP
  - Roberto B. Quintos — BSP
  - Ana May C. Magsino — BSP
  - Ma. Rosario N. Delena — BSP

*Source: 1phlea2021004 - Section 2*

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_Source: https://www.imf.org/-/media/files/publications/cr/2021/english/1phlea2021004.pdf_