DBM: Gov't on road to fiscal sustainability
By CHINO S. LEYCO
February 14, 2011
Manila Bulletin
MANILA, Philippines – The Department of Budget and Management (DBM) said the government is on the straight path towards achieving fiscal sustainability amid higher revenue collections and prudence in public expenditure management.
Budget and Management Secretary Florencio B. Abad said latest indications showed that the Aquino administration's target of reducing the deficit to 2 percent of gross domestic product (GDP) could be achieved in the medium-term.
Based on preliminary figures the 2010 ratio has improved to 3.6 percent from 3.9 percent in 2009 of GDP. In absolute terms, the preliminary fiscal deficit for 2010 stands at P310 billion or 4.6 percent lower than the programmed deficit of P325 billion.
“Based on the preliminary figures, the Aquino administration has kept within its deficit target for 2010 because of improved revenue collection in the latter part of the year, coupled with our consistent exercise of prudence in public expenditure management,” Abad said.
The economic manager said that last year’s preliminary performance is better than the target of 3.9 percent of GDP. With this, he said it is possible to achieve the immediate goals of reducing the deficit versus GDP to 3.2 percent in 2011, 2.6 percent in 2012 and 2.0 percent in 2013.
On the revenue front, Abad said emerging revenue collections for 2010 amounted to P1.207 trillion, higher year-on-year by P83.8 billion or 7.5 percent.
He attributed this improved performance to increased tax and customs revenues by 9.6 percent and 17.6 percent, respectively, over the performance in the previous year. He emphasized that in the fourth quarter alone, collections by the Bureau of Internal Revenue grew by 11.3 percent year-on-year, while Bureau of Customs collections grew by 23.9 percent.
On the expenditure front, Abad said preliminary figures show that disbursements amounted to P1.514 trillion, which is within the revised spending program of P1.614 billion as the national government continued to exercise prudence in expenditure management. Nonetheless, last year’s preliminary level was an increase by 6.7 percent from the 2009 level.
Budget and Management Secretary Florencio B. Abad said latest indications showed that the Aquino administration's target of reducing the deficit to 2 percent of gross domestic product (GDP) could be achieved in the medium-term.
Based on preliminary figures the 2010 ratio has improved to 3.6 percent from 3.9 percent in 2009 of GDP. In absolute terms, the preliminary fiscal deficit for 2010 stands at P310 billion or 4.6 percent lower than the programmed deficit of P325 billion.
“Based on the preliminary figures, the Aquino administration has kept within its deficit target for 2010 because of improved revenue collection in the latter part of the year, coupled with our consistent exercise of prudence in public expenditure management,” Abad said.
The economic manager said that last year’s preliminary performance is better than the target of 3.9 percent of GDP. With this, he said it is possible to achieve the immediate goals of reducing the deficit versus GDP to 3.2 percent in 2011, 2.6 percent in 2012 and 2.0 percent in 2013.
On the revenue front, Abad said emerging revenue collections for 2010 amounted to P1.207 trillion, higher year-on-year by P83.8 billion or 7.5 percent.
He attributed this improved performance to increased tax and customs revenues by 9.6 percent and 17.6 percent, respectively, over the performance in the previous year. He emphasized that in the fourth quarter alone, collections by the Bureau of Internal Revenue grew by 11.3 percent year-on-year, while Bureau of Customs collections grew by 23.9 percent.
On the expenditure front, Abad said preliminary figures show that disbursements amounted to P1.514 trillion, which is within the revised spending program of P1.614 billion as the national government continued to exercise prudence in expenditure management. Nonetheless, last year’s preliminary level was an increase by 6.7 percent from the 2009 level.
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