ECONOMIC Managers on Wednesday approved a new 5.0-6.0% growth target for 2010 — significantly higher than the 2.6-3.6% range it replaced but down from a proposed 5.9-6.9% — following the first quarter’s surprisingly strong 7.3% uptick.
Other macroeconomic targets were maintained, Finance Secretary Margarito B. Teves told reporters, but the budget deficit could increase to a fresh high even as revenue agencies exceed their collection goals.
“Based on our fine-tuning of the recommendation of the technical working group of the DBCC and analyzing the factors that will drive GDP (gross domestic product) growth, we ended up with the 5.0-6.0% [target],” Mr. Teves said.
The interagency Development Budget Coordination Committee, which sets the country’s macroeconomic targets, met yesterday to discuss proposals submitted by its executive technical board. Officials who attended the board’s meeting last week said one of the recommendations was a 2010 GDP growth goal of 5.9-6.9%.
While the deficit target of 3.6% of GDP will be maintained, Mr. Teves said increased spending to sustain the growth momentum could push the nominal shortfall to around P300 billion from the current P293 billion.
The budget deficit hit a record high of P298.5 billion last year, equivalent 3.9% of GDP. (PIA-Bohol)