Govt raises transport infra budget By Chino S.

Leyco Published: July 25, 2013 The national government has raised by more than half its transport infrastructure budget for next year to help meet the Aquino administrations tourist arrival target, a Cabinet official said yesterday. Budget and Management Secretary Florencio B. Abad said that the government has earmarked P180.1 billion for its transport infrastructure program, higher by 64 percent compared with P110 billion budget for 2013. Abad said the significant increase in transport infrastructure budget would help in meeting the governments target of 6.8 million international and 47.7 million domestic tourists for 2014. Of the total budget for next year, Abad also said that the Department of Public Works and Highways will receive P14.5 billion for the construction and maintenance of 679 kilometers of access roads to tourism destinations. These efforts will support the continued revitalization of our most promising sectors, such as tourism, agriculture and fisheries, and manufacturing, Abad said. Under the proposed 2014 expenditure plan, we can broaden our budgetary support for these prime industries to bolster our economic competitiveness, spur investment, and further generate jobs for Filipinos, he added. On Monday, President Benigno Aquino III raised the governments target of foreign tourist arrivals to 6.8 million from an earlier goal of 5.5 million. Likewise, the chief executive adjusted upward the countrys domestic tourism target for 2016 to 56.1 million after it broke the 37.5 million level of local travelers in 2011. President has lauded the Civil Aviation Authority of the Philippines (CAAP) for the agencys stunning progress after the countrys flag-carrier Philippines Airlines was removed from the EU air safety watch list. The Department of Tourism estimated that tourism receipts from the European markets may reach up to $1.5 billion after the ban on PAL was lifted. Tourism Assistant Secretary Benito C. Bengzon Jr. said in an interview with reporters that an average European tourist in the Philippines spends $2,000 to $2,500 per visit. Bengzon said that the government is looking at least 600,000 European tourists will come to the Philippines after the lifting of flight restrictions from the current 300,000.

Budget deficit at P51.3B in first half, below ceiling By Chino S. Leyco

Published: July 26, 2013 The national government remains well below its budget deficit program in the first semester of the year despite the collection shortfall of the countrys two-main tax agencies, the Department of Finance (DOF) said yesterday. In a statement, Finance Secretary Cesar V. Purisima, however, said that the within programmed budget deficit at end-June was an encouraging sign of continued fiscal stability in the national governments operations. The government incurred P8.5 billion fiscal deficit in June, bringing its first-half figure to P51.3 billion deficit for the first half of 2013. Purisima explained the fiscal space remains wide to support growth as the first half tally remains contained below the programmed deficit of P84.7 billion for 2013. In June, total revenues reached P131.089 billion, while expenditures amounted to P139.540 billion. For the first half, aggregate revenues summed up to P839.463 billion, financing P890.753 billion in expenditures. It is notable that our deficit still has not exceeded our program range even as expenditure growth outpaced revenues. Our commitment to fiscal sustainability still stands, Purisima said. Netting out interest payments, the government still operates under a primary surplus amounting to P105.8 billion as of June. In January to June, revenues increased 10 percent year-on-year to P839.463 billion from P760.921 billion. In June alone, total revenues were up 14 percent to P131.089 billion from the same month in the last year. The increased collection effort for 2013 is led by the Bureau of Internal Revenue (BIR), collecting P593.711 billion, a 14 percent year-on-year growth from the previous year. In June, BIR was able to collect P88.7 billion, growing by 9 percent from the same month last year. Meanwhile, the Bureau of Treasury had an income of P8.9 billion, an increase of 168 percent from last year, bringing their six-month tally to P49.5 billion, 57 percent above their first half targets. The Bureau of Customs, on the other hand, collected P23.2 billion in June, while revenue from other offices amounted to P10.1 billion, 11 percent higher year-on-year.

Debt-for-Nature swap completed Published: July 27, 2013 The US and Philippine governments have signed two agreements involving a new $31.8million debt-for-nature deal, authorized under the US Tropical Forest Conservation Act (TFCA).

The agreements will redirect approximately the debt payments owed by the Philippines to the US Agency for International Development (USAID) toward conservation and will establish a Second Tropical Forest Conservation Fund. The Fund will be used to provide grants to conserve, maintain, and restore key tropical forests in the country, with particular and priority emphasis on the Sierra Madre, Samar and Leyte, Palawan Islands and Bukidnon/Misamis areas. In addition, to helping to preserve the Philippines extraordinary terrestrial biodiversity, the fund will contribute to international climate change mitigation efforts. The agreements were singed by US Ambassador Harry K. Thomas Jr. and Finance Secretary Cesar V. Purisima. In 2002, the US and the Philippines signed a bilateral debt reduction agreement under the TFCA wherein the US treated US$8.1 million in outstanding loan interest which the Philippines used to create a fund for the conservation of tropical forests in the country. The first Tropical Forest Conservation Fund, managed by the Philippine Tropical Forest Conservation Foundation (PTFCF), has supported 261 conservation projects with $4.5 million in grants. The projects improved the management of approximately 1.3 million hectares of forest lands, restored over 3,400 hectares of forests through the re-introduction of native trees and established 40 community-based conservation areas. This Second Tropical Forest Conservation Fund supports the five-year Partnership for Growth (PFG) initiative signed by the US and the Philippines in November 2011. The Philippines is one of only four countries chosen to participate in the PFG program, which aims to mobilize the resources of both governments to address the most serious constraints to economic growth and development in the Philippines. (CSL)