The Development Budget Coordination Committee (DBCC) has retained its target for the deficit-to-gross domestic product (GDP) ratio at 2 percent this year until 2016.
“We kept the assumptions [with regards]to deficit and growth. Hindi nabago [nothing has changed], 2 percent of GDP in 2013 all the way to 2016,” Budget Secretary Florencio Abad said after the DBCC meeting on Wednesday.
Abad said that to date, the deficit-to-GDP ratio was at about 1.6 percent, adding that the government is still looking to hit 2 percent as programmed.
Nominally, the DBM chief noted that the government has to be able to hit the full-year deficit cap of P238 billion, while its outlook at end October was set at P185 billion.
At the end of the third quarter of 2013, data from the Department of Finance (DOF) showed that the national government recorded a 1.2 percent deficit-to-GDP ratio, “way below” the 2-percent ratio target for 2013. The budget deficit was recorded at P101.2 billion in the third quarter, or P2.7 billion lower compared to the same period last year.
The DOF data, however, added that the deficit for the first nine months of 2013 was “well within” the target of P144.5 billion for the period.
P11.2B October deficit
Meanwhile for the month of October, the government incurred an P11.2-billion budget deficit, bringing the 10-month shortfall to P112.5 billion.
“We are hoping that we can hit the cap. We need a space, so that next year we can do more infrastructure [spending],” Abad said.