RP deficit may hit $2.53b

RP deficit may hit $2.53b

MANILA (AFP): The Philippines' budget deficit this year could hit 126.5 billion pesos (US$2.53 billion) under a "worst-case scenario" Finance Secretary Jose Pardo said here Monday.

"We have done some sensitivity analysis and we are looking at these worst-case scenario figures," Pardo said.

Such a deficit would be twice as much as the 62.5-billion-peso deficit ceiling that was originally agreed to under an International Monetary Fund program.

Among the causes of the projected huge deficit, are the rise in interest rates, poor revenue collection by the Internal Revenue Bureau and the delay in the privatization of government assets which were originally programmed for disposal before year- end, Pardo said.

However, he expressed optimism that the worst-case scenario would not eventuate, saying the government still hoped to hold the deficit down at about 100 billion pesos.