PinoyWeb

Where did RP debt go?

MANILA - All borrowings under President Arroyo's term--that racked up the country's outstanding debt to a whopping P4.2 trillion as of 2008 from only P2.2 trillion in 2000--were necessary, her economic managers argue, amid accusations the President was responsible for the country's deepening financial woes. The question now is: Where did all the debt go? Finance Secretary Margarito Teves said bulk of the present administration's borrowings were used to settle debts, which were not its own. He...

(UPDATE) RP to sell assets to keep deficit target

MANILA - The Philippines will have to sell assets to keep its budget deficit target this year, Finance Secretary Margarito Teves said, after the fiscal gap ballooned in the first 7 months. The country's budget deficit hit P34.6 billion in July, bringing the fiscal shortfall for the first 7 months of the year to P188 billion, up 462.5% from last year's P33.4 billion. The July figure is higher than the P20.3 billion budget gap in June, and represents more than half of the government's P62.5 billi...

S&P retains stable outlook for RP

MANILA, Philippines – Standard & Poor’s Ratings Services has retained its stable outlook on the Philippines, indicating that the ratings are unlikely to change over the short term. The international credit agency also affirmed all of its credit ratings, citing the country’s external strength and the stability of its banks. The credit rating agency said this outlook could actually be revised to positive if the government showed renewed focus and commitment to fiscal consolidation an...

DOF: More public spending to spur growth

The Department of Finance (DOF) is pushing for more public spending as a way to help businesses cope with the global financial crisis instead of tax cuts. According to estimates by the DOF, public spending leads to more economic growth compared to tax cuts. For instance, the DOF said that a P20-billion additional spending results in an additional economic growth of P64.4 billion. On the other hand, DOF estimates further showed that a tax count of P20 billion only leads to an increase in incom...

DOF OK with a two-tier sin tax scheme, instead of one

The Department of Finance (DOF) is willing to forego its earlier proposal to impose a single tax rate on tobacco and alcohol products just so it can collect much-needed revenues as soon as possible. Finance Secretary Margarito Teves told reporters after a dialogue with House of Representatives leaders that the department is willing to settle for a two-step system instead, after Ways and Means committee chair Exequiel Javier told him that imposing uniform taxes on all "sin" product...