Narrower 2019 budget deficit seen
Credit to Author: Mayvelin U. Caraballo, TMT| Date: Thu, 19 Dec 2019 16:48:10 +0000
The country’s economic managers are projecting a narrower government budget deficit this year as they revised downward their revenue and expenditure program.
Based on the Development Budget Coordination Committee’s (DBCC) medium-term fiscal program, the budget shortfall for 2019 is seen to hit P610 billion, or 3.2 percent of the country’s gross domestic product (GDP).
The latest outlook of the economic managers was a downward revision from their previous estimate of P624.37 billion.
Government revenues were now estimated to reach P3.147 trillion, lower than the previous forecast of P3.149 trillion.
Meanwhile, disbursements were projected at P3.75 trillion, down from the earlier estimate of P3.77 trillion.
The DBCC earlier said the government’s comprehensive tax reform program could help ensure a reliable revenue base and enhance the economy’s modernization.
“Quickly completing the passage of the remaining tranches of the tax reform will ensure a steady revenue flow and equitable sharing for the government’s social and infrastructure programs while securing fiscal stability long into the future,” the economic managers said.
Next year, the budget gap is seen to widen to P671.2 billion, or 3.2 percent of GDP, as disbursements of P4.16 trillion are estimated to surpass P3.49 trillion in revenues.
For 2021, the P4.58-trillion disbursements and P3.84-trillion revenues are forecast to result in a P737-billion budget deficit.
Lastly, a P811.2-billion budget gap is projected for 2022 as P5.12-trillion disbursements are seen to offset P4.31-trillion revenues.