deficit

Deficit hits record P314.4 billion

THE BUDGET deficit hit a new high of P314.4 billion in 2010 but prudent spending and higher revenues kept the shortfall well under the year’s P325-billion cap, the government yesterday said.

It still topped the previous record of P298.5 billion, hit in 2009, and was also higher than officials’ initial estimate of P309.8 billion. As a percentage of gross domestic product (GDP), the 2010 deficit was equivalent to 3.7%, below the target of 3.9%.

“The lower-than-program deficit was realized because of improved revenue collections in the second half of the year as well as prudent spending exercised by the Aquino administration,” Finance Secretary Cesar V. Purisima said in a statement.

Disbursements totaled P1.522 trillion, up from 2009’s P1.421 trillion but within the programmed P1.619 trillion. Revenues summed up to P1.207 trillion, higher than the P1.123 trillion recorded a year earlier.

Read more at Business World

 

Deficit at all-time high PHP314.4 billion, below expectation

The government revealed that the budget deficit hit record level to the tune of PHP314.4 billion in 2010.  Prudent spending, and higher revenue collection kept the deficit below the PHP325 billion cap the government had set.

“The lower-than-program deficit was realized because of improved revenue collections in the second half of the year as well as prudent spending exercised by the Aquino administration,” BusinessWorld quoted Finance Chief Cesar V. Purisima.

To add color, the 2010 deficit was 3.7 percent of Gross Domestic Product (GDP).

DOF says deficit to stay within target, Q3 GDP between 6.7 to 7.7 percent

The Department of Finance reported that the deficit would be within target:

Finance Secretary Cesar V. Purisima expressed confidence, on Tuesday, that the full-year deficit would be kept within the target of P325 billion amid efforts to improve tax collection and expand the tax base.

Budget Secretary Florencio B. Abad said that while government expenses increased by 6 percent to P1.263 trillion, the government has been spending judiciously.

Meanwhile, GDP was projected between 6.7 percent and 7.7 percent for the 3rd quarter.