The country's actual budget deficit reached P298.5 billion in 2009, erasing speculation that it swelled to over P300 billion, the Department of Finance said Thursday.
The figure was equivalent to only 3.9 percent of the gross domestic product (GNP), a measure of the country's total output of goods and services in a year.
Finance Secretary Margarito B. Teves told a press conference that the final figure was P48.5 billion more than the 2009 goal of only P250 billion as the budget shortfall totaled P26 billion in December 2009.
“The budget deficit of P298.5 billion was due largely to weak revenue and the implementation of revenue-eroding measures as well as lower proceeds from privatization,†Teves said.
There were initial fears that the budget deficit would bloat to P330 billion and create complications like a credit downgrade which makes it difficult for either government or the private sector to borrow.
Collections for the year reached P1.123 trillion, which were P115.9 billion lower than anticipated.
This was because the Bureau of Internal Revenue delivered only P750.3 billion, instead of P798.5 billion as expected.
The Bureau of Customs also delivered only P220.3 billion instead of P273.3 billion while the Bureau of Treasury contributed P9.8 billion, or 9.8 percent more than its target.
Public spending was hiked significantly last year, particularly at the tailend of the fiscal program, due to weather-related destruction on key infrastructures.
Still, such spending grew by only 12 percent to P1.421 billion, or P67.4 billion lower than intended, Teves said.
“In summary our deficit in 2009 was higher than likely budget gap of P290.2 billion announced earlier. We actually hoped to perform better than we anticipated due to improved tax collection performance in December but the revenue gains were offset by increased spending for infrastructure towards yearend,†he said.
The deficit in December alone amounted to P26 billion, significantly higher than year-ago deficit of only P1.4 billion as revenues fell 16.3 percent to only P101.5 billion.
Teves expressed apprehension that Congress, most of whose members seek reelection during the upcoming May exercises, might cave in to people's demands and enact more revenue-eroding measures that denied the national coffers with some P49 billion last year. (PNA)
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