DBCC sets RP 2010 deficit at P233B, budget at P1.54 trillion

August 13, 2009 10:26 am 

MANILA, Aug. 13 -– Economic managers have set the national government (NG) budget for next year at P1.54 trillion, eight percent higher from this year’s P1.42 trillion.

“We will submit the budget proposal to Congress before August 26 (2009),” said Budget and Management Secretary Rolando Andaya Jr.

Relatively, next year’s budget deficit was set at P233 billion or about 2.8 percent of gross domestic product (GDP) for 2010.

This was the upper end of the government’s target range for the medium term fiscal summary with the low end at P208.4 billion, which is about 2.5 percent of GDP.

This is also lower than this year’s budget ceiling of P250 billion or about 3.2 percent of GDP.

“Our priority is fiscal consolidation, that the deficit for next year is lower than this year’s P250 billion,” said Budget and Management Undersecretary Laura Pascua.

The targets were approved by economic managers during the meeting of the inter-agency Development Budget Coordination Committee (DBCC), which sets the government’s macroeconomic assumptions, Wednesday.

The government sees lower deficit next year as it vies to increase revenues and as the global economy is expected to recover as early as the latter part of this year.

Growth of the economy is also expected to improve from this year’s target of 0.8-1.8 percent. (PNA)

DCT/JS

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