The Department of Finance (DoF) will likely propose between P270 billion and P275 billion budget deficit next year, which is equivalent to 2.6 percent of the country’s gross domestic product (GDP).
Finance Undersecretary Gil S. Beltran said in an interview that the proposed budget deficit ceiling will be attained assuming the country’s economy will grow by 5.5 percent next year and inflation will average 3 percent.
“The nominal budget deficit program for 2012 is not yet final but what’s certain is that the deficit-to-GDP ratio will be at 2.6 percent,” Beltran said.
The official, meanwhile, said that the government’s budget deficit program of P300 billion for 2011 will not be changed despite the lower than expected spending in the first four-months of the year amid higher revenues collected by the two main tax agencies.
Finance Secretary Cesar V. Purisima earlier said the government will contain this year’s budget deficit at 3.2 percent of GDP.
The National Statistical Coordination Board earlier reported that the Philippine economy grew by 4.9 percent in the first quarter of the year, significantly slower than the 8.4 percent recorded in the same period last year.
Read more at Manila Bulletin