Philippine budget deficit lowest in a decade
Tuesday, 12 February 2008
MANILA, Feb 11 (AFP): The Philippines posted a better than expected 9.4 billion peso (229.26 million dollars) budget deficit in 2007, the lowest in 10 years, the government said today, but warned of tougher times ahead.
The figure is equivalent to 15 per cent of the figure originally programmed for the year, with asset sales offsetting tax collection shortfalls, it said.
The 2007 deficit accounted for 0.1 per cent of the country's gross domestic product (GDP) compared to a target of 0.9 per cent of GDP or 63 billion pesos.
For December, the government incurred a deficit of 22 billion pesos, a big jump from the deficit of 6.5 billion pesos recorded a year before.
The December shortfall wiped out the 12.6 billion peso surplus recorded in the first 11 months of 2007.
Finance Secretary Margarito Teves, who had initially projected a budget surplus of 300 million pesos for 2007, said the government is sticking to its goal of balancing the budget in 2008.
The figure is equivalent to 15 per cent of the figure originally programmed for the year, with asset sales offsetting tax collection shortfalls, it said.
The 2007 deficit accounted for 0.1 per cent of the country's gross domestic product (GDP) compared to a target of 0.9 per cent of GDP or 63 billion pesos.
For December, the government incurred a deficit of 22 billion pesos, a big jump from the deficit of 6.5 billion pesos recorded a year before.
The December shortfall wiped out the 12.6 billion peso surplus recorded in the first 11 months of 2007.
Finance Secretary Margarito Teves, who had initially projected a budget surplus of 300 million pesos for 2007, said the government is sticking to its goal of balancing the budget in 2008.