GDP is the value of the goods and services produced in a country in a year.
During the fourth quarter of last year, the Budget chief said that the budget shortfall reached P138 billion, or much higher than the deficits incurred during the third quarter at P32.9 billion, the second quarter’s P28.8 billion and the first quarter’s P24.5 billion.
“Infrastructure projects drove up the deficit in the fourth quarter. On top of the infrastructure budget under the GAA [General Appropriations Act] of 2011, we spent an additional P85 billion under the disbursement acceleration plan,” Abad said.
Meanwhile, DBCC members agreed to reduce the growth projections for both imports and exports this year to $75.9 billion from $79.4 billion, and $55.3 billion the earlier outlook of P58.6 billion, respectively.
Finance Secretary Cesar Purisima, on the other hand, said that economic managers decided to keep the deficit ceiling for the year at 2.6 percent of GDP or about P279 billion.
Revenue targets
Abad, meanwhile, said that for 2012 the government retained the revenue target for the Bureau of Internal Revenue at P1.0661 trillion, while the Bureau of Customs’ projection was decreased to P347 billion from the original P365 billion. The Bureau of the Treasury, on the other hand, is expected to contribute P61.8 billion, while other government offices are expected to generate P85.7 billion.
“The disbursement for the year is reduced to P1.84 trillion from P1.85 trillion, that’s about P16.9 percent of GDP,” Abad said. Abad said that for the present year, the government would have to spend another P19 billion to materialize projects that did not push through during the previous year on account of underspending.
“That would still be determined whether we could pluck out the said fund under the P1.816 trillion GAA or we can source it from other sources of revenues,” he added.
“2011 was a very unusual year, there were a lot of black swans such as the nuclear disaster in Japan, Middle East arm conflict and the euro zone economic crisis, and these are the factors that are beyond our control. But we are happy with the things that we have control,” Purisima said when asked for reaction on the 4-percent GDP growth rate forecast released by the National Economic Development Authority for last year.
The GDP growth rate target last year was between 4.5 percent to 5.5 percent, while for the year the DBCC is looking at 5-percent to 6-percent growth.
During the fourth quarter of last year, the Budget chief said that the budget shortfall reached P138 billion, or much higher than the deficits incurred during the third quarter at P32.9 billion, the second quarter’s P28.8 billion and the first quarter’s P24.5 billion.
“Infrastructure projects drove up the deficit in the fourth quarter. On top of the infrastructure budget under the GAA [General Appropriations Act] of 2011, we spent an additional P85 billion under the disbursement acceleration plan,” Abad said.
Meanwhile, DBCC members agreed to reduce the growth projections for both imports and exports this year to $75.9 billion from $79.4 billion, and $55.3 billion the earlier outlook of P58.6 billion, respectively.
Finance Secretary Cesar Purisima, on the other hand, said that economic managers decided to keep the deficit ceiling for the year at 2.6 percent of GDP or about P279 billion.
Revenue targets
Abad, meanwhile, said that for 2012 the government retained the revenue target for the Bureau of Internal Revenue at P1.0661 trillion, while the Bureau of Customs’ projection was decreased to P347 billion from the original P365 billion. The Bureau of the Treasury, on the other hand, is expected to contribute P61.8 billion, while other government offices are expected to generate P85.7 billion.
“The disbursement for the year is reduced to P1.84 trillion from P1.85 trillion, that’s about P16.9 percent of GDP,” Abad said. Abad said that for the present year, the government would have to spend another P19 billion to materialize projects that did not push through during the previous year on account of underspending.
“That would still be determined whether we could pluck out the said fund under the P1.816 trillion GAA or we can source it from other sources of revenues,” he added.
“2011 was a very unusual year, there were a lot of black swans such as the nuclear disaster in Japan, Middle East arm conflict and the euro zone economic crisis, and these are the factors that are beyond our control. But we are happy with the things that we have control,” Purisima said when asked for reaction on the 4-percent GDP growth rate forecast released by the National Economic Development Authority for last year.
The GDP growth rate target last year was between 4.5 percent to 5.5 percent, while for the year the DBCC is looking at 5-percent to 6-percent growth.
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