No new tax measures seen in 2012

NO NEW TAXES. The Aquino administration will propose no new tax measures next year but is still confident that it can lessen the budget deficit.

Malacañang will not push for new tax measures in 2012 despite increasing the national budget next year to P1.8 trillion.

An economic official told the Inquirer that the Aquino administration was confident that it could still lessen the budget deficit even without new taxes.

This was the agreement among state economic managers following a meeting of the inter-agency Development Budget Coordination Committee last Saturday, during which they discussed next year’s proposed budget.

The proposal means an increase of about 10 percent from the P1.64-trillion budget for 2011.

The proposal was based on the assumption that the economy would grow within the range of 5.5 to 6.5 percent, which was lower than Malacañang’s goal of between 7 and 8 percent.

Such scenario also placed the deficit spending to about P286 billion, or 2.6 percent of gross domestic product, down from the 2011 target cap of P300 billion, or 3.2 percent of GDP.

A bigger budget would also require the Bureau of Internal Revenue to raise its tax collection goal to P1.07 trillion, up from this year’s P920 billion.

In turn, the Bureau of Customs would have to increase its revenue goal to P365 billion in 2012 from P320 billion this year.

According to the official, the government planned to follow through its programs to plug loopholes in tax administration with hopes of continued good results.

Budget Secretary Florencio B. Abad on Wednesday said in a statement that spending on social services and on infrastructure would get a significant boost in the proposed 2012 budget, although he said absolute figures might be released only after the proposal has been approved.

“The social services sector will continue to receive the lion’s share of more than 30 percent of the national budget, or more than P500 billion,” Abad said.

“To support escalated efforts for social protection, basic education and public healthcare, the sector will receive a budgetary increase of 8 to 12 percent,” Abad added.

Abad said infrastructure and other capital spending would be increasing by more than 20 percent, with the economic services sector receiving a quarter of the total budget, or more than P400 billion.

Malacañang is set to submit to Congress a proposed 2012 budget by July 26.