2010 budget depleted to 38%; deficit soars By Aytch de la Cruz 07/21/2010

2010 budget depleted to 38%; deficit soars

By Aytch de la Cruz 07/21/2010 The economic team of President Aquino appears intimidated by the sorry fiscal numbers the new administration inherited from President Arroyo with the fiscal deficit breaching all known previous levels while only 38.6 percent is left of the P1.5-trillion budget earmarked for the whole year. Budget Secretary Florencio Abad told reporters after a meeting among economic officials in the Cabinet that “surprises” in expenses up to the end of June when former President Arroyo stepped down, including what he called “congressional initiatives,” resulted in the fiscal shortfall to reach nearly P200 billion in the first half. Abad did not quote an exact figure on the first half deficit but when asked if it was near the P178 billion original limit set, Abad said it would be higher. “There were still surprises in the expenses, expenditures made up to the last month, up to the end of June 30 like for example in congressional initiatives which was in the billions,” Abad said.  Abad said the Cabinet meeting held yesterday touched mostly on the tight fiscal situation that the government is in. He said that additional borrowings to plug the budget shortfall were also discussed. If the collection targets are not achieved, that (borrowings) is the most likely step that we have to take and I think (Finance) Secretary (Cesar) Purisima is looking at that, Abad added..... MORE Source:  The Daily Tribune URL: http://www.tribuneonline.org/headlines/20100721hed3.html

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