Gov’t to post fiscal surplus by ’08 — Teves

The country is expected to post a surplus of P28 billion in its consolidated public sector fiscal position (CPSFP) by 2008, Finance Secretary Margarito Teves said.

Teves said this is based on the assumption that the expanded value-added tax (EVAT) law will be implemented.

If all fiscal reforms would be pursued, Teves said the consolidated public sector surplus (CPSS) would improve to P44 billion in 2009 and P48 billion in 2010.

As a percentage of the gross domestic product (GDP), the CPSP would reach -3.6 percent in 2005; -2.1 percent in 2006; -0.5 percent in 2007; 0.4 percent in 2008; 0.5 percent in 2009 and 0.5 percent in 2010.

Based on a medium-term outlook prepared by the Department of Finance (DOF), the CPSFP would be strengthened through a more intensified privatization programs and closer monitoring of government-owned and controlled corporations (GOCCs).

The DOF said it would be signing performance contracts next year with GOCCs and government financial institutions (GFIs) to ensure that they would be working hard to meet their performance targets.

The DOF is also pushing for the passage of the "Fiscal Responsibility Bill" which aims to instill fiscal discipline in the public sector by specifying principles of responsible financial management and promoting full transparency and accountability in government revenue, expenditure and borrowing programs.