PHL budget deficit was narrower than programmed, says Treasury chief

The Aquino administration posted a P197.754-billion budget deficit last year, compared with  P300 billion on program, National Treasurer Roberto Tan said in a press briefing Monday.   Accelerated spending in the last quarter of 2011 brought the December deficit to P101.50 billion, compared with P44.638 billion a year earlier, said Budget and Management Secretary Florencio Abad in the same press briefing.   Abad said disbursements improved significantly last year.   “In December alone, disbursements have reached an all-time high of P211.7 billion, increasing year-on-year by a whopping 43.2 percent. It was an unprecedented feat, as it contributed a significant 13.6 percent to total disbursements for the year, whereas normally, monthly spending contributes eight to ten percent to the annual aggregate,” Abad said.   Revenue collections last year totaled P1.359 trillion, or P51.4 billion short of the P1.411-trillion goal, as the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) missed their respective collection targets for 2011.   Government needs to generate more revenues as the economy grows, said Finance Secretary Cesar Purisima, noting that revenue gains in 2011 were achieved through tax administration efficiency.   “This is a concrete proof that our efforts to plug the loopholes in our tax system and fight tax evasion and smuggling are bearing fruit,” he said.   He noted the Aquino administration’s position on the need to index excise taxes to inflation and rationalize fiscal incentives for higher revenues.   “We are pushing for the enactment of these vital bills in Congress as we believe on their positive contribution to the economy,” said Purisima.   BIR collections amounted to P924.146 billion last year, compared with its P940-billion target. Still, the bureau eclipsed by 12.34 percent its P822.623-billion collections in 2010.   The Customs Bureau collected P265.108 billion last year, compared with its P320-billion collection target.  In 2010, the BOC collected P259.241 billion.   The Treasury Bureau reported its collections totaled P75.236 billion last year, from P54.315 billion in 2010.   Expenditures last year reached P1.557 trillion last year, compared with P1.711 trillion on program, which reflected P153.608 billion of underspending.   Government spent P278.996 billion for interest payments.    Government spending will continue to improve throughout 2012 as the Aquino administration drums up spending to boost economic growth, according to the Budget chief.   The economy grew 3.7 percent in gross domestic product (GDP) terms, slower 7.6 percent in 2010, partly because of weak government spending and a drop in demand from global markets.   The Aquino administration expects the economy to grow by 5 percent to 6 percent.   The programmed deficit ceiling this year was set at P286 billion or 2.6 percent of GDP. — VS, GMA News