9-month budget deficit hits P259.8B
The government incurred a budget deficit of P259.8 billion in the nine months to September, 5 percent lower than the P273.7-billion ceiling, Finance Secretary Cesar V. Purisima said Thursday.Purisima said, however, that overspending for the period was P22.3 billion, or 9.4-percent higher, than the deficit incurred in the same period in 2009. He said the government’s “over-performance” in terms of its fiscal position could be attributed to less spending—by P54.2 billion year on year—“partly on account of the savings in interest payments due to lower borrowing cost.” According to National Treasurer Roberto B. Tan, the government saved P11.4 billion in interest payments, shelling out only P244 billion during the period. The budget deficit for the first three quarters of the year represented about 80 percent of the projected full-year deficit ceiling of P325 billion. Purisima said the main revenue agencies boosted the government’s fiscal standing with collections reaching P894.7 billion, or 6.5 percent, higher than last year’s P839.8 billion. However, actual revenues were P40.4 billion short of the targeted P935.1 billion. The Bureau of Internal Revenue contributed P607.3 billion, up 9 percent from year-ago collections but 2.2 percent below its target. The Bureau of Customs chipped in P191.7 billion, up 15.5 percent year on year but down 9.1 percent against the target. The Bureau of the Treasury turned in P45.5 billion, which was 12.8 percent lower than the P52.2 billion earned last year. Expenditures for the first nine months reached P1.15 trillion, increasing by 7.2 percent from P1.03 trillion a year ago. “Let me reiterate that this administration remains focused on its good governance agenda with emphasis on tax enforcement and expenditure discipline,” Purisima said. “We will pursue our economic objectives of sustainable economic growth and poverty reduction within a sound fiscal framework.” In September alone, the deficit amounted to P31.7 billion, higher by 15.2 percent than the P27.5 billion incurred in the same month of 2009. Total revenues for the month reached P91.9 billion, a decrease of 8.7 percent from P100.7 billion. Of the total, the BIR chipped in P61 billion, which was 8.4 percent higher than the year-ago level of P56.2 billion. Customs contributed P20.2 billion, an increase of 10.8 percent from P18.3 billion, and the Treasury turned in P5.3 billion, short of last year’s P6 billion by 12 percent.
Peso won’t hit P41:$1 this year -- Aquino
THE PESO is unlikely to hit P41 per US dollar this year, President Benigno C. Aquino III yesterday said, noting central bank efforts to address capital inflows that are affecting exporters as well as families of overseas Filipino workers. "The P41 [per dollar rate], perhaps [will] not [happen] this year. The P43-44 level has a little bit of comfort," Mr. Aquino said in Cauayan, Isabela, yesterday after visiting areas affected by typhoon Juan. "[The] Bangko Sentral [ng Pilipinas] is doing its job well in trying to achieve some stability in terms of exchange rate." The President was commenting on an HSBC forecast that the currency could strengthen to as high as P41 per dollar by yearend. "That [a strong peso], of course, negatively impacts our exports sector which is rebounding already, contributing a lot to the national economy," Mr. Aquino said. He added that it "negatively impacts our remittances", referring to the reduced amounts migrant worker families would be getting. The peso has gained around 6% since the start of the year. | 
