DOF: 2010 budget deficit ends lower than ceiling

The government incurred a budget deficit of P314.4 billion last year, the Department of Finance (DOF) said Monday. Last year's fiscal deficit was below the government's target of P325 billion or 3.9 percent of gross domestic product. "The lower-than-program deficit was realized because of improved revenue collections in the second half of the year [and] prudent spending exercised by the Aquino administration," Finance Secretary Cesar Purisima said. In 2010, total revenues stood at P1.2 trillion while total expenditures reached P1.5 trillion, according to DOF data. Purisima pointed out that the revenue reform measures put in place by the Bureau of Internal Revenue and the Bureau of Customs have been effective. "Collections in both agencies have benefited from the vigorous implementation of the Run After Tax Evaders and Run After The Smugglers," he said. Since July last year, the two agencies have been regularly filing cases against delinquent taxpayers and smugglers before the Department of Justice. Purisima believes that this year's budget deficit program would also be achieved through the policies implemented by the Aquino administration. "Moving forward, the national government will continue to work hard to improve increase revenue collections and enhance spending efficiency," he said. "We are confident that this year's fiscal targets will be met," Purisima added. The government is eyeing to contain this year's budget deficit at around P300 billion or 3.2 percent of GDP. — JE, GMA News