PHL ECONOMY FACING MAJOR RISKS FROM ABROAD IN 2012 - BANGKO CENTRAL
MANILA, DECEMBER 23, 2011 (ABS-CBN) The Philippine economy is facing major risks from abroad that could limit its growth prospects next year, the central bank governor said Wednesday.
Although the country enjoys "sound macro economic fundamentals," and strong domestic demand, the economy could still be hurt by developments in Europe, the United States and China, central bank governor Amando Tetangco (photo above) said.
"The 2012 global economic outlook has deteriorated," he said, warning that there would be more volatility and uncertainty that could affect the Philippines.
"Although economic growth has slowed, we have not seen a contraction" in 2011, he told a forum of foreign correspondents.
The economy grew by 3.6 percent in the first nine months of the year, though the government maintained its full-year target of 4.5-5.5 percent, pinning its hope on a $1.66 billion state spending programme launched in October.
Next year's official growth target is 5-6 percent.
Tetangco said fears of an escalating debt crisis in Europe, the continuing weak US labour market and the risk of a slowdown in China could weigh on Philippine growth prospects in 2012.
They could result in a drop in trade, investment and official aid, he said, warning that even earnings from the country's booming outsourcing industry and the remittances of nine million Filipino workers overseas could be affected.
FROM MALAYA BUSINESS INSIGHTS
Gov't may end year with unspent budget BY ANGELA CELIS
THE Aquino administration's preoccupation with fiscal transparency left it unable to spend all of the P1.711 trillion appropriation for the current year.
With only 10 days left before the year ends, it does not seem possible for the government to spend the P365 billion left of the budget although there are no reports on how much it has spent from December 1 up to yesterday, December 21.
Data from the Bureau of Treasury show that for an 11-month period ending November, government expenditures amounted to P1.346 trillion.
This is 2.08 percent lower than last year's P1.375 trillion.
It is estimated that on the average, the government spent P122 billion a month in the past 11 months.
The underspending happened in spite of revenues rising 13.13 per cent during the 11-month period. Yet employment was up but a good part of the increase represents a larger increase in the number of underemployed, which went up from 7.141 million in October 2010 to 7.38 million in the same month of 2011.
Revenues from January to November amounted to P1.25 trillion, higher than the P1.105 trillion collected during the same period last year.
The government needs to collect P1.411 trillion for the whole year. This means that for December, revenues should breach P160 billion.
Budget deficit for the first 11 months of the year to P96.254 billion, less than a third of the P300 billion deficit cap for the year.
The amount is 64.33 percent lower than the P269.82 billion deficit during the same time last year.
For November alone, the government incurred a deficit of P22 billion, a reversal of the P482 billion surplus in November last year.
Expenditures for the month amounted to P151 billion, 35.74 percent higher than last year's P111 billion.
The government, however, did not release the spending target for November.
Revenues for the month amounted to P129 billion, 15.43 percent higher than the P111 billion collected during the same month last year.
"Our November fiscal position has shown our ability to sustain increased expenditures with improved revenue collections," Finance Secretary Cesar Purisima said.
"This only shows that we can keep up with our fiscal consolidation processes despite spending more to shield our economy from the present global uncertainties," he said.
The Bureau of Internal Revenue collected P92.75 billion last month, slightly lower than the P95 billion target.
From January to November, the agency was able to collect P849.5 billion.
This means that the agency needs to collect P90.485 billion for December to meet its P940 billion full-year target.
The Bureau of Customs collected P25.51 billion last month, lower than the P30.6 billion target.
From January to November, the agency was able to collect P242.96 billion.
To meet the P320 billion full-year goal, the Bureau of Customs needs to collect P77.04 billion for December.
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Chief News Editor: Sol Jose Vanzi
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