(Picture) Highest Record of Philippines Budget Deficit
According to BusinessWorld, the previous record of P298.5 billion, hit in 2009, and was also higher than officials’ initial estimate of P309.8 billion. As a percentage of gross domestic product (GDP), the 2010 deficit was equivalent to 3.7%, below the target of 3.9%.
Finance Secretary Cesar V. Purisima said, "The lower-than-program deficit was realized because of improved revenue collections in the second half of the year as well as prudent spending exercised by the Aquino administration".
Disbursements totaled P1.522 trillion, up from 2009’s P1.421 trillion but within the programmed P1.619 trillion. Revenues summed up to P1.207 trillion, higher than the P1.123 trillion recorded a year earlier.
Following a November surplus, the government incurred a deficit of P44.6 billion in December, which Budget Secretary Florencio B. Abad said was due to "frontloading" of spending for several 2011 projects.
The government’s two main revenue-generating agencies both missed their 2010 targets but collections were still higher compared to the previous year.
The Bureau of Internal Revenue (BIR), which accounts for around two-thirds (2/3) of the state’s tax earnings, collected P822.6 billion, a 9.6% increase from 2009 but still short of the 2010 goal of P860.4 billion.
The Bureau of Customs, meanwhile, collected P259.2 billion, a 17.7% year-on-year gain. It was, however, also well below the agency’s 2010 target of P280 billion.
Mr. Purisima said the government remained committed to prudent spending, although he warned that frontloading had continued in the first two months of this year.
The government wants to cap the 2011 budget deficit at 3.2% of GDP, or some P290 billion. Changes to this and other macroeconomic targets are possible, Mr. Abad said.
Source: bworldonline.com - https://www.affordablecebu.com/