"The funds will go to the stimulus [program]. The higher expenditure will help the economy grow," Finance Undersecretary Gil S. Beltran said in an interview last Friday.
The government has yet to specify the items to be funded but economic managers have previously said the focus would be on vital infrastructure and social programs.
"This administration is finishing the priority programs and projects that it has started. These will lay down the foundation for growth and an improved quality of life for future generations," Budget Secretary Rolando G. Andaya, Jr. said in a statement released over the weekend.
The higher expenditures will entail a wider budget deficit of P233.4 billion in 2010 or 2.8% of gross domestic product (GDP), higher than the initial target of P208.4 billion. The revision is still lower than this year’s P250-billion cap as the government sees gains in revenue collections next year.
Revenues are projected to hit P1.335 trillion in 2010, P10 billion more than an initial P1.325 trillion on account of higher privatization proceeds. The adjusted revenue program for 2010 is 7.75% higher than this year’s P1.239 trillion.
Earnings from the sale of state-owned assets are expected to reach P12.5 billion next year from P2.5 billion initially. The government is still finalizing its asset sale list for 2010.
The 2010 revenue targets of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC), meanwhile, were kept at P875.1 billion and P309.5 billion respectively. For this year, the BIR is expected to earn P798.5 billion while the BoC is required to collect P273.3 billion.
Last week the DBCC, which consists of the National Economic and Development Authority, Budget and Finance departments, and the Bangko Sentral ng Pilipinas, raised next year’s fiscal gap to P233.4 billion, citing the need for another stimulus program similar to this year’s P330-billion "Economic Resiliency Plan (ERP)."
The Budget department has said the second stimulus package would focus on long term agriculture and health projects as well as "shovel ready" infrastructure ventures. It said stimulus funds would come from a P1.541-trillion national budget, which is higher than this year’s P1.415-trillion outlay.
