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By Chino S. Leyco, Reporter
THE Department of Finance said the Philippines
may double its target revenues from the government’s privatization
program this year to support higher spending and cushion the impact
of skyrocketing commodity prices.
In a televised interview, Finance Secretary
Margarito B. Teves said the government may decide to dispose of its
40-percent shareholdings in Petron Corp. as well as its stake in
state-run Philippine National Oil Co.-Exploration Corp. (PNOC-EC).
This would cause a doubling of the current P30-billion revenue
program from privatization.
Government shares in Petron are estimated to
cost over P24.6 billion. An appraisal of PNOC-EC has yet to take
place.
“Because of the recent developments, the
primary consideration is really find resources to fund the
expenditure requirement of the government. Depending on [the]
President’s approval and policy makers, we might consider
[selling] other assets to take care [of] these additional spending
requirements,” Teves said in a telecast interview over Bloomberg
television.
Last January, the government raised P8.9 billion
when it sold shares in Manila Electric Co. to state-run Government
Service Insurance System. The government raised P90.6 billion last
year from the sale of state-owned assets, including its controlling
stake in PNOC-Energy Development Corp.
With its asset sales, the government slashed its
fiscal deficit in the first four months of the year to P25.8
billion, the lowest since 2001.
Teves said the government is keeping its options
open regarding the possible sale of its stake in Petron, adding any
such plan would require the approval of President Arroyo, PNOC and
the Privatization Council.
Lance Gokongwei, JG Summit Holdings Inc.
president and chief executive, had said the group wanted to buy the
government stake in Petron for P24.6 billion.
The Bureaus of Customs and of Internal Revenue (BIR)
are programmed to raise this year P1.1 trillion. For the second
quarter alone, the government should post a budget surplus of P19.2
billion, in line with its plan to attain a balanced budget.
“We have to work even harder to raise
additional revenues, which may be needed for increased spending on
sectors that require government support amid rising costs of food
and oil in the world market,” Teves said.
He said BIR collections were P13 billion above
its target, while Customs was short of P2.8 billion.
“But still we don’t have a clear idea on the
impact of the [economic] slowdown, so the effect to [gross domestic
product] will be very important. Since we don’t have the official
figure yet for the first quarter, it’s very difficult to make an
assessment,” he added.
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