Philippines remains committed to P63-billion deficit goal, P1.1-trillion revenue target

MANILA — President Gloria Macapagal-Arroyo ordered that the government should attain its P63-billion budget deficit goal and P1.1-trillion revenue target for the year during a revenue command conference yesterday with the inter-agency Development Budget Coordination Committee, the Bureau of Internal Revenue (BIR), Bureau of Customs, and the Department of Finance.

Finance Secretary Margarito Teves said that despite tax collection shortfalls in the first half of the year, the full-year deficit and revenue targets could be attained through improved collection efficiency, aggressive privatization efforts, and more effective anti-corruption programs.

Secretary Teves said that based on preliminary figures, the government budget deficit likely reached P37.7 billion in the first semester or P6.4 billion higher than the programmed deficit of P31.3 billion for the period due largely to collection shortfalls by the BIR and the BOC.

The estimated BIR shortfall amounted to P40 billion as of end-June while the BOC incurred a deficit of P13 billion during the period.

In separate presentations, the BIR and the BOC mapped out their action plans to meet their 2007 revenue targets of P730 billion and P228 billion, respectively.

BIR Offier-in-Charge Lilian Hefti, who took her oath of office Monday, said the BIR was committed to meeting its monthly revenue targets from July to December this year, and to even partly recover its revenue shortfall in the first semester.

The action plans cited by Hefti include the following: increase use of business intelligence, enhancement of audit programs, intensifying enforcement activities, and improving excise tax administration.

BOC Commissioner Napoleon Morales assured the President that by year-end, the agency would wipe out its estimated P13 billion revenue shortfall in the first half of the year.

The BOC’s action plans cover the auction of forfeited items, information sharing with other government agencies such as the Land Transportation Office, and enhanced audit, among others.

President Arroyo also called on the DOF, BIR and BOC to strengthen their anti-corruption or fear-factor initiatives as part of efforts to improve revenue collection.

Specifically, the President wants the agencies to pursue convictions or successful resolution of big-ticket cases rather than simply filing cases.

“We welcome the President’s call that our anti-corruption programs place emphasis more on quality rather than quantity of cases,” Teves said. “We will be more aggressive in our efforts to prosecute those involved in the cases.”

The heads of the Run After Tax Evaders (RATE), the Run After the Smugglers (RATS), and the Revenue Integrity Protection Service (RIPS) programs of the BIR, BOC, and DOF, respectively, reported to the President the status of cases filed before the courts and the Ombudsman.

The Department of Justice recently agreed to deputize BIR lawyers to prosecute cases which would help in facilitating the movement of these cases. The BOC is still working on securing a similar arrangement from the DOJ.