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Tuesday, March 07, 2006
Arroyo bares reduction in budget gap
PRESIDENT Gloria Macapagal-Arroyo on Monday said government's actual budget deficit in January stands at P15.4 billion, which is P5.5 billion lower than the target of P20.9 billion.
Arroyo, in a roundtable discussion with economic managers, said government revenues also rose to P72.6 billion and savings from expenditures reached P2.7 billion in January.
Because of this, she said government could afford to raise its expenses for infrastructure and education. She ordered Budget Secretary Rolando Andaya Jr. to release P500 million in order to close the classroom gap.
Arroyo said the new deficit figures are additional reasons for investors to bring in more capital into the country. She said the stock market and the peso remain strong despite destabilization attempts.
The President said the P2.7 billion savings is "a nice problem" because she has ordered the release of P35 billion to pump-prime the economy. "But that is a good problem compared to last year when we couldn't find funds," she said.
Arroyo rang the bell that signaled the start of trading at the Philippine Stock Exchange in Makati City Monday morning.
Finance Secretary Margarito Teves and Trade Secretary Peter Favila said it was a good sign to the businessmen because it shows Arroyo is in control of the situation.
Arroyo said the budget may be balanced by 2008, compared to the earlier target of 2010 because the current deficit level is in accordance with the 2008 target.
Teves said the 2010 target does not include the expanded value-added tax (e-VAT) so that "maybe through the e-VAT and other initiatives of the BIR (Bureau of Internal Revenue) and BOC (Bureau of Customs), we may close the gap earlier."
Customs Commissioner Napoleon Morales said BOC will achieve its full computerization program by 2010. BIR Commissioner Jose Mario Buñag said all revenue collection offices in the regions will be computerized by 2007.
Teves also said revenue collection effort is expected to reach 17 percent by 2010. (JMR/Sunnex)
(March 7, 2006 issue)
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