Philippine fiscal deficit lower than target in 2010

The fiscal deficit of the Philippine government in 2010 reached 314.4 billion pesos (7.26 billion U.S. dollars), equivalent to 3.7 percent of the country's GDP, the finance department reported Monday.

The full-year deficit is lower than the programmed 325 billion pesos (7.50 billion U.S. dollars). Finance Secretary Cesar Purisima attributed this to improved revenue collections and prudent government spending.

Total revenues in 2010 rose 7.5 percent on year to 1.2 trillion pesos (27.71 billion U.S. dollars). Purisima said the government's campaign against tax evaders and smugglers boosted the collection of the Bureau of Internal Revenues (BIR) and Bureau of Customs (BOC).

Total expenditures increased 7.1 percent to 1.5 trillion pesos (34.64 billion U.S. dollars). This is lower than the 1.6 trillion pesos (36.95 billion U.S. dollars) programmed for the year.

Purisima expects that the country's fiscal health will continue to improve this year.

"The National Government will continue to work hard to improve increase revenue collections and enhance spending efficiency. We are confident that this year's fiscal targets will be met," Purisima said.

Source: Xinhua

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