2014 budget still being reviewed

MANILA, Philippines – Economic managers met Wednesday, June 3 to discuss the 2014 national budget but no amount has been finalized yet.

Budget Secretary Florencio Abad said the Development Budget Coordination Committee (DBCC) was looking at a budget of P2.268 trillion for next year, but this could still change.

Chaired by Abad, the DBCC is the inter-agency body that sets the country’s macroeconomic assumptions. 

In February, it tentatively set the 2014 budget at P2.268 trillion or 13% more than this year’s budget of P2.006 trillion.

“This budget ceiling is consistent with the 6.5% to 7.5% growth target and the 3% to 5% inflation forecast for 2014,” Abad said.

The Aquino administration is running behind its budget preparation schedule.

Agency proposals should have been deliberated on and the budget plan should have been presented to President Benigno Aquino III and his Cabinet in June. But budget officials said the plan would be presented to Aquino only this week.

Abad said the government’s infrastructure budget was set at P400 billion for 2013 and they hope to raise this to P800 billion by 2016 to boost job creation.

National Treasurer Rosalia de Leon said the government might sell $1 billion global bonds next year to fund government spending.

The government sees the budget deficit hitting P266.2 billion in 2014, up 11.8% from the 2013 ceiling of P238 billion. The deficit is the difference between what the government collects and spends. – Rappler.com