Philippine budget deficit soars in 2009
January 26, 2010, 11:12 am TWN
MANILA -- The Philippines budget deficit soared 17 percent above the official target last year as spending rose to offset the impacts of the global financial crisis, an official said Monday. The deficit hit 293.2 billion pesos (US$6.35 billion) in 2009, equivalent to 3.7 percent of the gross domestic product (GDP), a finance department official, who declined to be named, told AFP. This exceeded the government's initial target of a 250-billion-peso deficit, equivalent to 3.2 percent of GDP.
Explaining the deficit, the official cited data showing revenue collection had gone down this year as expenditures soared due to government stimulus efforts to cope with the global financial crisis.