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By Angelo S.
Samonte, Reporter
THE
Development and Budget Coordinating Committee (DBCC) on Friday
announced the quarterly targets the government has to meet with
regard to its fiscal position this year.
The targets
are in line with the government’s goal of containing its budget
deficit at P63 billion, or 0.9 percent, of this year’s economic
output, as measured by the country’s gross domestic product (GDP),
which is the amount of goods and services produced locally.
For the first
quarter, the interagency body set the deficit at P45.8 billion. A
surplus of P14.6 billion is expected for the second quarter, and
deficits of P22.7 billion and P9 billion for the third quarter and
fourth quarters, respectively.
Budget
Secretary Rolando Andaya Jr., who chairs the DBCC, said the
government aligned the first-quarter deficit target with a scheme to
frontload spending and take advantage of the dry season. The
projected surplus in the quarter will be due to an election ban on
new public-work projects.
The DBCC also
approved quarterly revenue targets as follows: P255.8 billion for
the first quarter, P302.2 billion for the second quarter, P279
billion for the third quarter and P281.8 billion for the fourth
quarter. These are based on this year’s total funding requirement
of P1.11 trillion.
The spending
caps for the first to fourth quarter are: P301.6 billion, P287.6
billion, P301.7 billion and P290.8 billion. The government is
programmed to spend P1.18 trillion this year.
The DBCC said
the quarterly targets will prevent a deviation from the deficit
target for this year, allowing the government to make adjustments in
its expenditure allocation.
The
government’s goal is to have a balanced budget by 2008.
Finance
Secretary Margarito Teves said the government will assess the
country’s fiscal consolidation initiative to determine whether it
is achievable by the end of 2008.
“We will do
the assessment between now and the first half,” Teves told
reporters during a teleconference.
The government
is trying to achieve fiscal consolidation next year, and Teves said
there is much focus on tax administration, improving tax collection
efficiency and revenue enhancement measures.
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