Finance chief Purisima says 2012 deficit is on target

The deficit likely fell within the P279 billion target for 2012, the Finance Secretary Cesar Purisima said Monday. 

 

The interagency Development Budget Coordinating Committee (DBCC) set a deficit ceiling of 2.6 percent of gross domestic product.

 

"We’ve shown that we’ve been able to do it. We’re confident that 2012 will come in within 2.6 percent," Purisima noted.

 

Because the Aquino administration has a wide fiscal space, the department sees the deficit falling within the ceiling of 2 percent of GDP from 2013 to 2016, according to the Finance chief.

 

"We will  stick to our medium-term fiscal consolidation program that we announced at the beginning of the Aquino administration, and that we’re very much within targets. For the deficit, we will have it at 2 percent  and maintain it at 2 percent of GDP from 2013 onwards," Purisima said.

 

The government closely monitors its fiscal position on a monthly basis, he added.

 

Latest Finance Department data showed the deficit at P11.564 billion in November 2012, narrower by 47.4 percent from P22.003 billion a year earlier.

 

The shortfall last November brought the 11-month budget gap to P127.3 billion, wider than the P96.254 billion a year earlier, and way below the full-year program of P279 billion.

 

The 11-month represents only 45.6 percent of the full-year program. — VS, GMA News