MANILA (July 21) — The Philippines recorded a budget shortfall of P30.2 billion in June, bringing the first-half deficit to P153.4 billion, lower than targeted deficit of P155.1 billion, Finance Secretary Margarito Teves said.
As a result of dwindling tax collections and accelerated spending, its budget deficit has been revised three times to reflect higher shortfalls. The government now expects a record shortfall of P250 billion or 3.2 percent of gross domestic product.
Budget Secretary Rolando Andaya said that in line with a goal to balance the budget by 2013, the government will not allow the deficit to reach 4 percent of GDP this year.
He also said that aside from fiscal discipline, a global recovery could help the government narrow its fiscal shortfall in 2010 where a budget deficit of 2.5 to 2.8 percent of GDP is being considered.
