2006 budget deficit seen at P80-P90B

The government expects its 2006 budget deficit to be within its new target of P80 to P90 billion, Finance Secretary Margarito Teves said yesterday.

However, Teves was unable to give an exact figure except to say that the deficit is within target and might even be lower. The government last month slashed its deficit target to P80 to P90 billion from the original target of P125 billion as it vowed to increase spending on infrastructure and social services.

Latest figures placed the budget deficit at P58.32 billion as of November. The data also show’s that the government spent less than programmed and has saved P72 billion in the period. The government had an expense budget of P1.013 trillion for the 11 months, but spent only P940.76 billion.

The government was forced to control its expenditures after the House of Representatives failed to pass a proposed national budget of P1.053 trillion. As a result, government had to operate under the budget of 2005, which was about P100 billion less. However in October, Congress approved a supplemental budget of P46.9 billion. Socioeconomic Planning Secretary Romulo L. Neri said that the additional budget will be used to boost spending.

Neri said that although the recent savings trend has not been good for the economy, the government has already taken measures to correct it by spending more, specifically on infrastructure and social services to improve the country’s competitiveness.

"This hopes to bring in more investments, create jobs, increase incomes and sustain the growth momentum," Neri said.

The additional budget was for a number of agencies among them were the Department of Education (DepEd) which was alloted P9.58 billion to be used to fill up vacant teaching posts, open new teaching slots, repair buildings, procure textbooks, as well as fund the milk feeding program for some elementary schools.

The Department of Agrarian Reform (DAR) received P4.59 billion for its Comprehensive Agrarian Reform Program. The Department of Science and Technology received P500 million for the development of a 22-hectare property in the University of the Philippines to be converted into a research institutes.