by magnolia_eic | Aug 18, 2010 | Headlines, National News
The Aquino Administration approved on Monday its FY2011 borrowing program in the amount of P307.8 billion.
Presidential Communications Development and Strategic Planning Secretary Ricky Carandang announced in a press briefing at Malacanang on Tuesday that the decision was reached after President Benigno S. Aquino III met on Monday with Finance Secretary Cesar Purisima and Budget Secretary Florencio Butch Abad.
“The foreign mix will be 70%-30%, in favor of domestic borrowing,” Carandang said.
He explained that of the P307.8 billion net borrowing expected, P45.1 billion will be external or foreign borrowing, and P262.7 billion will be the domestic borrowing.
At the same time, Carandang said the Aquino administration will also issue peso denominated global bonds aimed at raising funds to plug the country’s swelling budget deficit.
Programmed budget deficit next year was pegged at P285 billion.
Carandang noted that this will be the first securities float of the peso instruments in the global market as the Philippines usually floats global bonds denominated in dollars and even in Japanese yen.
The move is part of the Aquino Administration’s liability management efforts. (PIA/PCOO)
by magnolia_eic | Jul 29, 2010 | Headlines, National News
FINANCE Secretary Cesar Purisima has directed the Commission on Audit (COA) to examine the books of government-owned and -controlled corporations (GOCCs) as well as government financial institutions (GFIs), with June 30, 2010, as the cut-off date.
“The date is important for establishing accountability,” Purisima told reporters, adding that financial audits “take a while” to complete.
Of particular interest are the books of the National Food Authority, which reported total liabilities of P171 billion as of May 2010—an amount, he said, that quintupled from a mere P28 billion in 2003.
Purisima said President Benigno Aquino III “presented his findings in the SONA” based on his officials’ “examination of some documents available” to them.
He said the COA would also look into the financial condition of the National Irrigation Administration, National Electrification Administration and Philippine National Railways, among others.
Many GOCCs and GFIs are money-losing entities led by political appointees who often have little expertise in their fields of concern. (PIA-Bohol)
by magnolia_eic | Jul 19, 2010 | Headlines, National News
THE Aquino government filed its first tax evasion case on Thursday to launch its campaign to shore up shaky revenues and cut the budget deficit by cracking down on corruption and enforcing tax collection laws.
Finance officials went to the justice department to file tax evasion charges against pawnshop owner William Villarica, who they said paid only P25,600 in income tax between 1998 and 2009, but was able to buy a P26 million Lamborghini sports car.
“We would like to inform the paying public that it’s no longer business as usual and chances of being caught is higher,” Finance Secretary Cesar Purisima told reporters.
Newly installed Bureau of Internal Revenue chief Kim Henares said that the tax agency has been investigating Villarica since 2007, but was only able to file a criminal case against him now.
In the meantime, Justice Secretary Leila de Lima said she was reviewing tax cases referred by the finance department, pointing to a list that had names of 16 individuals and corporations.
The Philippines had a tax collection rate of 12.8% of its gross domestic product (GDP), lower than the regional average of 16 %, the finance minister said. (PIA-Bohol)
by magnolia_eic | Jul 9, 2010 | Business, Headlines, National News
THE Aquino administration will embark on an aggressive liability management effort by exploring various options available to government, Finance Secretary Cesar Purisima said on Wednesday.
Purisima said the new government would review the current borrowing program set by the previous administration.
“What we want is to lengthen maturities,” said Purisima, adding that in three to four years, there would be some bunching up of maturities.
As such, he said the government would embark on a liability management effort by reviewing existing borrowing strategies and future plans.
Options include doing debt swaps and bond exchanges.
“We will consider all instruments available to us based on the right price and the right cost. It will also depend on the timing,” he said.
Purisima did not provide details on when the review would be concluded. (PIA-Bohol)
