2014 budget deficit set: P266-B

MANILA, Philippines – The Department of Budget and Management programmed a P266.2-billion budget deficit for 2014, 11.9% higher than 2013’s P238-billion ceiling.

The figures are equivalent to 2% of the country’s gross domestic product targets for 2013 until 2016, and in line with the government’s fiscal consolidation program, the agency said in National Budget Memorandum 116.

The deficit was targeted to reach P279.1 billion in 2012 or 2.6% of GDP. Preliminary data however showed the budget gap likely stood at only P253.3 billion for the year or 2.2% of GDP.

The deficit is the difference between the government’s revenues and spending. It is funded by borrowings.

With efforts to improve collection of taxes, the government is looking to raise revenues from the Bureau of Internal Revenue, Bureau of Customs and other offices to P2.025 trillion in 2014, 16% higher than the 2013 program. The figure takes into account new collections from higher sin taxes.

Spending, on the other hand, is forecast to rise to P2.291 trillion or 17.2% of GDP in 2014 from P1.984 trillion or 16.7% of GDP this year. – Rappler.com