Aquino gov’t aims to reduce deficit-to-GDP to 2%
By Lala Rimando
MANILA, Philippines – The Aquino administration wants to bring down the country’s budget deficit to 2% of gross domestic product (GDP) in the next 3 years, Budget Secretary Florencio Abad said Thursday.
The budget shortfall is forecast to reach P325 billion or 3.9% of GDP this year.
“We want to bring down deficit-to-GDP ratio to 2% starting 2013 from 3.9% now,” Abad told reporters at the sidelines of the Public-Private Partnership Conference in Pasay City.
“We are making renewed commitment to fiscal responsibility,” he added.
The deficit hit P259.8 billion in the first 9 months, already 80% of the 2010 ceiling.
Abad said the budget gap will not exceed the full-year target as the government tightens spending and shores up revenue collection.
“We will make sure that deficit will be within or below the P325-billion target,” he said.
The Aquino government, who took office in June, earlier said it would improve revenues by enforcing existing tax laws and cracking down on tax evasion and smuggling.