The government's two main tax agencies are tasked to collect P1.302 trillion next year, higher by 18 percent compared with P1.106 trillion for 2010, data from the Development Budget Coordination Committee (DBCC) showed.

The inter-agency body tasked to set the country's macroeconomic targets has programmed P959 billion for the Bureau of Internal Revenue (BIR) for next year, while the Bureau of Customs (BoC) is expected to deliver P343 billion.

The 2011 target of the country's main tax collection agency is 11 percent higher than this year's goal of P860.4 billion, while Customs' revenue goal is significantly higher by 22 percent compared with P280.7 billion in 2010.

The DBCC will submit to Congress a P1.757 trillion national budget for 2011 as bulk of it will be spent for social services, infrastructures, education and Department of Social Welfare and Development (DSWD) projects.

The inter-agency has also programmed P298-billion budget deficit next year, lower than this year's P325 billion.

Budget Secretary Florencio B. Abad, said next year's financial gap will be equivalent to 3.3 percent of gross domestic product (GDP), a reduction of 60 basis-points compared with 3.9 percent of the economy this year.

Abad said the government plans to raise revenues next year to P1.46 trillion, which is aimed at enabling the state to reduce the budget deficit even as it increases spending to boost growth.

He said spending on public works, salaries and debt payments may total P1.757 trillion, or 14 percent higher than the 2010 budget of P1.54 trillion.

President Aquino, who took office on June 30, plans to accelerate growth to as much as 8 percent in 2011.

The deficit in the first six months of the year was P196.7 billion, exceeding the previous government’s estimate for a gap of P178.5 billion.

In June alone, the government posted a P34.6-billion deficit, or 14 percent higher compared with P30.2 billion in the same period last year.

Mr. Aquino is currently going after tax evaders and corrupt officials to boost state revenue without raising taxes in his efforts to contain the budget gap. His government this month widened the 2010 deficit target to a record P325 billion to sustain the economy’s recovery from last year’s global slump.