Latest Stories

2013 budget deficit may breach ceiling, says DOF


The budget deficit may go over the ceiling set for 2013 due to the expected shortfall in tax collections for the full year and rise in public spending to further boost economic growth, the Department of Finance (DOF) said.

According to the DOF’s latest projections, the budget deficit for the year may reach P242.16 billion, or over P3 billion more than the P238.87-billion target.

But the latest estimate will still be equivalent to 2 percent of the projected gross domestic product (GDP) for the year, and may not affect the country’s credit standing. A deficit-to-GDP ratio of 2 percent may be considered manageable, Finance officials said.

Revenues from taxes, import duties, dividends from state-owned firms, fees and charges collected by state agencies are estimated to reach P1.742 trillion, slightly lower than the goal of P1.745 trillion set for the full year.

The DOF said that the Bureau of Internal Revenue, the main income earner of the government, may not be able to meet its collection target of P1.253 trillion.

But revenue officials said that the government had set a very high target. They added that the emerging figure on tax collection, projected at P1.249 trillion, still represented an 18-percent increase from the P1.058 trillion collected last year.

But they also acknowledged that the revenue agency could still improve tax collection by plugging leaks arising from tax evasion and under-declaration of incomes.

Also, the government expects expenditures for the full year to reach the full-year ceiling set at P1.98 trillion, even if public spending fell below expectations in the first semester.

In the first half of the year, expenditures reached only P890.75 billion, nearly P55 billion lower than the P945.65-billion cap.

The Department of Budget and Management earlier said that measures had already been undertaken to help government agencies catch up with their expenditure programs for the year. The measures include the streamlining of procedures to speed up the implementation of projects, the agency said.

It said payment procedures are also being enhanced so that contractors and suppliers are paid within a shorter period of time.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Budget , budget deficit , Business

  • NoWorryBHappy

    But the latest estimate will still be equivalent to 2 percent of the
    projected gross domestic product (GDP) for the year, and may not affect
    the country’s credit standing. A deficit-to-GDP ratio of 2 percent may
    be considered manageable, Finance officials said.
    This WILL affect Moody’s credit rating of the Philippines.
    Prabably, from junk status to SUPER JUNK status.

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • Kim Henares needs a reprimand, says Cayetano
  • AFP denies hand in disappearance of Tiamzon’s gardener
  • PH gov’t to verify MILF presence in Basilan clash
  • Padaca ‘eager’ to air side on trial over graft, malversation raps
  • DPWH to favor road rehab over preventive maintenance in next 2 years
  • Sports

  • Power Pinoys salvage 7th place in Asian men’s volley club championship
  • Knicks prevent Nets from clinching fifth seed
  • Arsenal beats West Ham 3-1 in Premier League
  • Memorial service marks Hillsborough anniversary
  • My ideal weight is 140, declares Pacquiao
  • Lifestyle

  • Celebrate Easter Sunday at Buddha-Bar Manila
  • Moriones feast: A slow, steady transformation
  • Weaving ‘palaspas’ a tradition kept alive in Tayabas City
  • Finalists announced for best translated books
  • Summer treat for your aspiring astronomers
  • Entertainment

  • Mommy Dionisia Pacquiao’s greatest hits
  • Deniece Cornejo posts bail—report
  • Miley Cyrus hospitalized, cancels US concert
  • Otaku Summer Jam 2014: Summer’s hottest J-rock/Cosplay event
  • 2NE1 returns to Manila with “All Or Nothing” Tour
  • Business

  • I-Remit teams up with Lakhoo for remittances from Oman
  • Megawide nets P1.4 B in 2013
  • Longer TRO sought on rate hike
  • Make a stylish statement with the all-new Yaris
  • Hearing set in Olarte case
  • Technology

  • Smart phone apps and sites perfect for the Holy Week
  • Tech company: Change passwords or suffer ‘Heartbleed’
  • Filling the digital talent gap
  • SSS to shut down website for Holy Week
  • Another reason to quit social media this Holy Week: your safety
  • Opinion

  • We may never know
  • Couple of things
  • Mommy D’s magic
  • Stop bizarre and bloody Good Friday rituals
  • Holy Week taboos
  • Global Nation

  • 2 PCG men ordered arrested over Balintang Channel shooting
  • US Embassy closed on Holy Thursday, Good Friday
  • Relief worker draws inspiration from helping Yolanda victims
  • Philippines says peace pact should hold despite clashes
  • No travel restrictions to Middle East amid MERS-CoV scare
  • Marketplace