PHL 2011 budget deficit to reach P300B — DOF

The Philippines may incur a higher budget deficit of P300 billion this year, according to the Department of Finance (DOF) on Thursday after it revised it earlier estimate of P290 billion Still, the deficit to gross domestic product (GDP) ratio is unchanged at 3.2 percent, the department said. The department took into account government revenues totaling P1.411 trillion against P1.711 trillion in revenues, DOF data showed. The collection targets of the Bureau of Internal Revenue and the Bureau of Customs have been kept unchanged at P940 billion and P320 billion, respectively. In 2010, the country's fiscal deficit reached nearly P310 billion — below the P325-billion ceiling — equivalent to 3.6 percent of GDP. The Aquino administration intends to narrow the deficit to 2 percent of GDP by 2013. — JE/VS, GMA News