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Monday, January 03, 2005
RP to have better times in 2005: Boncodin
BUDGET Secretary Emilia Boncodin said Sunday the Philippines is facing better times in 2005 provided that new fiscal reform measures are passed and implemented and a continued belt-tightening is observed.
Boncodin, in a press statement, said the road to better times in 2005--an expected "definite improvement" over 2004--will be "bumpy", helped in part by an anticipated lower than targeted budget deficit due to the strong performance of revenue collection agencies.
"The Philippines is back on track in terms of fiscal consolidation but the road ahead would still be bumpy," Boncodin said.
She added that she expects better investor activity in the Philippines following the Supreme Court ruling upholding the legality of the Mining Act which allows foreign participation in the mining industry, the opening of the Ninoy Aquino International Airport (Naia) Terminal III by June, government's privatization programs, and government's intensified anti-corruption efforts.
"Based on these factors and barring any cataclysmic event, I can say with full optimism that 2005 would be a better year for all of us," said Boncodin adding that "below target" budget deficit level is also a plus factor.
"Our latest indications show that the deficit will be around P192 billion or 4.1 percent of GDP or even lower. This proves that our efforts to exercise fiscal responsibility are paying off," Boncodin said.
The current budget deficit target is P197.8 billion or 4.2 percent of the gross domestic product (GDP).
Boncodin acknowledged the contributions of the Bureaus of Internal Revenue and Treasury for the deficit level and the improved performance of the Bureaus of Customs and the BOT, which increased the government's capital spending and brought down the lag in accounts payable for government projects.
She also expects the government's fiscal situation will improve in 2005 following the passage of the alcohol and cigarette excise tax law that is estimated to generate P15 billion in additional revenues.
The DBM secretary also thanked all departments, agencies and government-owned and controlled corporations (Gocc), and institutions for strictly adhering to the administration's austerity program.
"As a result, we were also able to control public expenditures and accelerate payments for capital expenditures since August 2004," Boncodin said, adding that the consolidated public sector deficit (CPSD) is expected to be lower than the target of 6.7 percent of GDP.
The economy this year is expected to grow at 5.3 to 6.3 percent of GDP. (JMR)
(January 3, 2005 issue)
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