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Monday, February 16, 2004
Gov't sets deficit target at P197.8B
By Christie Enriquez-Uayan
WITH the foreseen rise in income from taxes and proper spending, the government has set a lower budget deficit for this year, Finance Secretary Juanita Amatong said during the recent yearend economic briefing.
Pegged at P197. 8 billion, this year's target is two percent lower compared to the 2003 target amounting P202 billion.
"We continue to adopt proper matching of expenditures and revenues and we have set the working target based on medium term program which is focused on fiscal consolidation by 2009," Amatong said.
This year, the government expects to jack up revenue collection to P674.4 billion, 15.5 percent higher last year.
Expenditures, meanwhile, is estimated at P872.2 billion, 11 percent higher than last year's target.
Amatong said the 2004 estimated revenues represent 14.3 percent of the country's forecasted gross domestic product (GDP), while the targeted amount for expenses account for 18.5 percent.
The medium term fiscal program, the Finance Secretary explained, aims to reduce to about 3 percent the country's expenditures by 2009.
It also targets a steady 3 percent reduction in deficit to GDP ratio starting 2005 and a sharp, progressive rise in revenue efforts to reach the ideal 20 percent of the GDP by 2009.
Justifying the need for borrowing, she said budget deficit has begun piling up in 1998, and has continued, albeit subdued, to date.
"We have to borrow because revenues have not been enough to match expenditures that have been increasing over the past years," the Finance Secretary stressed.
In 2003, a total of P530.4 billion was loaned by the government from domestic and international sources.
Last year's deficit pegged at P199.9 billion was below the P202 billion target set by the government, Amatong said.
(February 16, 2004 issue)
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