The Philippine government is likely to sustain the projected budget deficit this year to meet the various expectations and Benigno Aquino President’s commitment to not raise taxes.
“Apparently [the deficit is maintained]. We’ll see, “said Aquino.
He also expressed the Philippine government will review the state spending plan in 2011 amounted to 1.68 trillion pesos made by the previous government.
Aquino declared her promise to revive the emergency infrastructure program to create jobs, help farmers with the availability of irrigation, technological, and multiply the security workforce.
Yesterday, Aquino raised a number of names into the cabinet, including the president of Manila Electric Co., Manila Water Co., Maynilad Water Services Inc. and SM Investments Corp executive to head the four departments in economics.
“The Philippines will become a place that is predictable and consistent for investment, a country where everyone would say ‘all things can go’,” he asserted.
State spending plan that is now likely to complicate efforts to reduce the budget deficit. In this month, the Aquino government has raised the estimated deficit to 297.5 billion pesos (U.S. $ 6.4 billion), close to record highs last year.
The state government has ever been colonized by Spain was also recommended to increase the value added tax (VAT) from 12% to 15% to boost state revenues by 94 billion pesos.
They also raised its forecast of economic growth to a level of 6% for 2010 after record growth in the first quarter of 2010 amounted to 7.3%. Referring to Bloomberg data, the Philippine Stock Exchange index also jumped 9.8% in U.S. dollars.
“Growth is more important than balancing the budget,” said Finance Minister Cesar Purisima Philippines yesterday. In the period 2002-2004, the average budget deficit was around 200 billion pesos, and then shrank to 12.4 billion pesos in 2007.
Meanwhile, in a press briefing in Manila today, Purisima expressed his government will intensify the implementation of legislation that would allow transfer of the personnel bureau of tax and customs based on their performance.
“We hope the taxpayers will help to identify and remove corrupt tax officials. Tax break [tax aid] will be reviewed and made more efficient and effective. “
Tags: Finance Minister Cesar Purisima Philippines, Maynilad Water Services Inc, Philippines
Posted in Economy News
The finance ministers of the European Union (EU) approved new sanctions on Monday that aims to tighten budget discipline in an effort to reassure markets that the government had learned from the crisis, Greece, diplomatic sources said. Results from the eight-hour conversation that is achieved when French President Nicolas Sarkozy said he and German Chancellor Angela Merkel will propose new regulations to sanction countries that violate EU implementation of the agreement for EU countries.
