Philippines Evaluates Lower Economic Growth Targets for 2003

July 22, 2002 - 0:0
MANILA -- The Philippines' budget secretary said Sunday the government was evaluating recommendations to scale down economic growth targets for next year.

Budget Secretary Emilia Boncodin said there were also plans to increase next year's budget deficit target to allow more room for higher spending to boost the economy, DPA reported.

"These are recommendations of the technical working group but have not been approved by the Development Budget Coordination Committee or the cabinet," she said.

Under the proposal, the government's target for gross domestic product (GDP) growth in 2003 would be reduced to 4.9-5.4 percent from the current range of 5.4-5.9 percent.

The projection for gross national product (GNP) growth would be cut to 5-5.5 percent from 5.5-6 percent.

On the other hand, the budget deficit target of 99 billion pesos ($1.98 billion) for next year would be increased to 130 billion pesos ($2.6 billion).

Boncodin said the recommendations were based on the possible adverse impact of the El Nino weather phenomenon on the agriculture sector, which accounts for almost half of GDP.

This year, GDP is expected to expand by 4.5-5.5 percent, while GNP by 5.5-6 percent.

The government hopes to keep the budget deficit within 130 billion pesos ($2.6 billion) this year, but warnings have already been aired that the target might not be met.