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By Angelo S. Samonte, Reporter
President Gloria Arroyo on Tuesday announced
that the country is well on its way to balancing the budget this
year as a result of a record revenue collection. “The other day,
Finance Secretary [Margarito] Teves reported that in April we posted
a surplus of P25.8 billion, the highest surplus attained for the
income-tax collection month of April since 1986,” said President
Arroyo, who led the groundbreaking for the P4.17-billion
Panglao-Bohol International Airport.
“The peso is strong, investments are surging
especially in Bohol, and we are close to balancing our budget,”
she added.
The President said the country’s strong fiscal
position has enabled government to fund the Panglao International
Airport, a far cry from the usual practice of borrowing money from
foreign-lending institutions.
With the current monetary position, Mrs. Arroyo
said, non-interest expenditure for major infrastructure, such as the
Panglao airport, rose by 12 percent, while interest payment declined
by 6 percent. “So we can spend more for infrastructure,” she
added.
The President said revenue collection from
January to April this year exceeded the target by P11.7 billion,
while interest savings for the last four months totaled P2.2
billion.
“So given this performance, [Teves] said we
are still on track with our fiscal program to balance the budget,”
she added.
The President said her administration is
stepping up its efforts to sustain these fiscal gains, particularly
in generating the resources to fully meet the requirements for
critical spending for food security and vital infrastructure
projects.
With the Philippines achieving its strongest
economy in 30 years, Mrs. Arroyo congratulated Bohol and other
provinces that have graduated from Club 20, referring to the poorest
provinces in the country.
The country aimed for a balanced budget this
year after the World Bank and other international agencies
pinpointed chronic deficit as a key drag on growth.
Rocketing oil prices and the economic slowdown
in the United States, the country’s main trading partner, however,
have led officials to consider increased spending to trigger
economic activity.
-- With AFP
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