Deficit-GDP Ratio within Ceiling
DAVAO CITY - The government's budget deficit did not exceed 2.3 percent of the country's gross domestic product last year, lower than the Aquino administration's 2.6 percent ceiling, a ranking official said.
Budget and Management Secretary Florencio B. Abad said yesterday that the budget deficit last year was likely between 2.0 percent and 2.3 percent of the country's gross domestic product (GDP).
"Deficit will be well below our ceiling of 2.6 percent. I think it is much closer to 2.3 percent," Abad told reporters, which is equivalent to P279.1 billion in nominal terms.
As of November last year, the government's budget deficit stood at P127.3 billion after spending reached P1.535 trillion while revenues amounted to P1.408 trillion.
Abad said that the government spending in December last year was significant higher compared with P211.67 billion incurred in the same month a year before.
"Higher spending in December was due to of capital infusion into the Bangko Sentral ng Pilipinas (BSP) and infrastructure spending," the budget chief explained.
In December, the Department of Budget and Management (DBM) infused another P20 billion into the BSP's capital as part of the national government's legally-mandated equity infusion, under the New Central Bank Act of 1993 or Republic Act 7653. …