PHL budget gap to hit only half of programmed deficit – economist

The Philippine government will likely post a P180-billion budget gap this year, or just half of the P260-billion deficit on program, economist Victor Abola of the University of Asia & the Pacific said in a briefing Wednesday.   Underspending in the first nine months is mainly responsible for the narrower-than-expected budget shortfall of 2011, Abola said.   In the nine months to September, government spending was P175.9 billion short of what was allotted for the period, the economist cited. “A (deficit of) P180 billion will be tough,” Abola said at UA&P-organized year-end Business Economics Briefing.   From the original ceiling of P300 billion or 3 percent of the economy, the deficit was narrowed down to P260 billion or 2.6 percent of gross domestic product.   According to Bureau of Treasury Data, the September deficit stood at P18.501 billion, which brought the nine-month deficit to P52.994 billion, largely because of lower disbursements that did not meet the expenditure program for the period.   The deficit in September 2010 stood at P31.684 billion and the January-to-September figures totaled P259.788 billion that same year.   In January to September this year, disbursements amounted to P1.070 trillion, compared with the expenditure program of P1.275 trillion for the period.   Still, economist Abola sees the Philippine economy growing by 4.7 percent this year or within the official range of 4.5 percent to 5.5 percent, and will likely perform better next year by growing 6 percent.   “GDP growth would remain robust due to added public spending and strong private sector [participation],” Abola said. — VS, GMA News