Economic planners to consider wider deficit spending

Government planners have decided Tuesday to review their spending targets after a slower economic growth of 4.9 percent in the first quarter cast in doubt the whole-year target of 7 percent to 8 percent. Socio-Economic Planning Secretary Cayetano Paderanga Jr. said the Development Budget Coordinating Committee (DBCC) will take another look at the deficit ceiling to see if government still has some leeway to pump-prime the economy with public funds. The National Statistical Coordination Board (NSCB) said, “Under-spending by the government and the slowdown in global trade constricted the economy to a lower growth." NSCB figures showed government spending in the first quarter fell by almost 14 percent compared to the same quarter last year and accounted for only 11 percent of the gross domestic product (GDP). The same figures also recognized private industry and Filipino households for spurring GDP growth. The elbow room the DBCC is looking for may come from revenue growth and a slight budget surplus. Revenues from January to April rose by 18.22 percent to P461.413 billion. That helped bring the fiscal surplus to P61 million, reversing the P131.80 billion-deficit posted in last year’s first four months. The Aquino administration earlier said some of the budget surplus was the result of non-tax improvements. Government intends to impose higher service fees to raise non-tax revenues by 1.2 percent annually and improve internal revenue collection by 0.3 percent yearly until 2016, the National Economic and Development Authority said in its just-released long-term economic master plan. — ELR/VS, GMA News