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Friday, April 21, 2006
P27B budget deficit goes past forecast
MANILA - Higher interest payments offset improved revenues in March, leading to a worse-than-expected budget deficit of P27.2 billion, National Treasurer Omar Cruz said yesterday.
The government had aimed for a deficit of P23.7 billion for the month.
However, the budget deficit for the three months to March came in at P67.6 billion, well within the P71.8-billion ceiling set by the government for that period, Cruz said.
Cruz attributed the rise of the deficit in March to interest payments.
Higher spending
Revenues in March reached P68.1 billion, exceeding both the target of P63.8 billion as well as the P58.6 billion posted a year earlier.
However, expenditure rose sharply to P95.3 billion, above the target of P87.6 billion.
For the first quarter of the year, total revenues reached P205 billion, better than the target of P191.7 billion and the P171.7 billion in the first quarter of 2005.
Expenditures in January-March period totaled P272.6 billion against the target of P263.5 billion.
“Expenditures exceeded the program on account of front loading of interest payments as a result of the government’s bond exchange,” Cruz said.
In late February, the government swapped P111.1 billion worth of government securities for three-, five- and seven-year benchmark bonds.
The government hopes to achieve a balanced budget by 2008. President Arroyo has implemented key revenue reforms in recent months in an effort to address the deficit.
The budget deficit in 2005 reached P146.5 billion, lower than the target of P180 billion. (AFP)
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