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|Subject: Budget Deficit Reaches P212.7 Billion in 2002 Fri Sep 16, 2011 10:47 am|| |
The country's budget deficit reached an all-time high of P212.7 billion, representing about 5.3 percent of the gross domestic product (GDP) in 2002. In 2001, the national government incurred a budget gap of P147 billion or only 4 percent of the GDP. At current prices, the country's GDP is estimated at P3.6 to P3.8 trillion (around US$72 billion).
Data from the Bureau of Treasury show that government expenditures reached P778.7 billion while revenue collections amounted to only P566 billion in 2002.
In particular, the Bureau of Internal Revenue (BIR), the government's main tax collection arm, missed its original target by P53.4 billion and collected only PP393.6 billion while the Bureau of Customs, which is in charge of tariff and import duties, missed its target by P18.9 billion and hauled in only P96.25 billion in 2002.
To fund the deficit, the government borrowed a total of PhP264.176 billion from domestic and foreign sources for the year. This was higher than the PhP111.807 billion in borrowings the government programmed for 2002.
For 2003, the government set the budget deficit ceiling at P147 billion or around 4.7 percent of the GDP.