RP budget deficit soars to US$2.1b

RP budget deficit soars to US$2.1b

MANILA: The Philippines' budget deficit soared way above
target to 107.5 billion pesos (US$2.1 billion) in the five months
to May, the government said Wednesday, triggering a stock market
selloff.

"Let me be frank. The deficit for the first five months of the
year exceeded the programmed targets," Finance Secretary Jose
Isidro Camacho told reporters.

The five-month deficit figure was way above the government's
first-half target ceiling of 78.26 billion pesos.

The market swooned at the news due to fears that the deficit
situation would drive up interest rates. The Philippine Stock
Exchange composite index settled 46.43 points or 3.9 percent down
to 1,143.68 points at midday after heavy morning trading.

Camacho said five-month revenues reached 223.84 billion pesos,
while the government spent 331.38 billion pesos over the period.
-- AFP