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By Chino S. Leyco, Reporter
THE national government can manage not to borrow
money right now, the Bureau of Treasury announced, citing the
Philippines’ strong fiscal position as of May.
At Tuesday’s auction, the bureau intended to
sell P7-billion worth of Treasury bonds, and banks were willing to
buy the full award but at an average rate of 8.508 percent, much
higher than the bureau’s expectation.
“We were expecting at least a bit higher than
8.225 percent; we were willing to accept 8.25 percent,” Deputy
Treasurer Eduardo Men-diola told reporters.
The three bonds were initially issued in April
last year at 6.436-percent rate.
Mendiola said the government has enough
liquidity to sustain fiscal requirements. “I don’t think it is
wise for us to borrow at an expensive rate. Expenditures have not
been as much as we have expected. We’re not on track on spending
side and I think we’re getting some windfall from revenue side.”
Finance Secretary Margarito Teves will announce
today the country’s fiscal position in the first five months of
the year, which posted a P28.5-billion budget gap in April.
“I’m optimistic because we have plenty of
liquidity [resulting in] a positive fiscal position . . . our
borrowing is also within program,” Mendiola added.
The government is under pressure to surpass its
goal this year as it plans to raise spending and cushion the impact
of skyrocketing prices through more subsidies, especially for the
poor.
The Arroyo administration announced earlier it
was abandoning the plan to balance its budget this year. Teves said
the government expects to end the year with a budget deficit of P40
billion to P75 billion.
Apart from taxes, the government expects to
raise P30 billion this year from the sale of state assets.
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