CLARK,Pampanga — The government may not be able to balance its budget this year because the government needs to spend more to ensure strong economic growth and avert a potential food crisis."The need for accelerated spending will put more pressure on revenue and threaten the target (of a balanced budget)," Budget Secretary Rolando Andaya told reporters. Officials said earlier the government plans to push forward spending on infrastructure this year to help the economy cope with an expected slowdown in the U.S., the country’s main trading partner and a major source of investments. Andaya did not elaborate, but he cited efforts to avoid a potential crisis arising from soaring food prices, particularly rice, the staple grain. The Philippines posted a budget deficit of P13.9 billion in January, less than half from a year ago. The 2007 deficit has been revised upward to P12.4 billion from the initial P9.4 billion but still only about a fifth of the projected ceiling of P63 billion.

The Bangko Sentral ng Pilipinas (BSP) has raised its forecast for gross domestic product (GDP) growth to 6.91 percent for 2008, from a previous forecast of 6.7 percent. The BSP has submitted this new GDP projection to the Monetary Board last March 13. The assumption is that the US economy will only slow down and not fall to a recession. The central bank’s inflation target of 3.5 percent for this year remains. But this range is under review since the rates are still based on the assumption that GDP growth will be 6.7 percent for 2008 and 6.9 percent for 2009. In 2007, the economy as measured by GDP grew 7.4 percent from 6.6 percent in 2006. The old GDP projection is also based on the assumption that international crude oil prices will average at $ 90.16 per barrel for 2008 and $ 86.28 per barrel for 2009. The inflation target also assumes that headline overnight lending rates will average at 5.25 percent from December 2008 to December 2009 and that the 91-day Treasury bill rate will average at 4.5 percent for 2008 and 5.5 percent for 2009. For 2008 the BSP is also reviewing oil assumptions in view of the persistent global risks.

The multi-awarded pickup of Isuzu Philippines Corporation, the Global D-MAX, lorded it over the competition in terms of unit sales for the month of February, based on the figures officially released by the Chamber of the Automotive Manufacturers of the Philippines (CAMPI) and the Truck Manufacturers Association, Inc. (TMA). For the second month of the year, Isuzu sold a total of 258 units of the D-MAX, accounting for 27.1 percent of the overall industry sales tally of 953 pickups. The figure also means the D-MAX sold 62 more units than it did in January, bringing its year-todate total to 454 units, or 24.7 percent of the industry total (1,836 units). Launched in the Philippines in 2003, the Isuzu Global DMAX continues to be popular among pickup buyers due to its constantly updated exterior styling and class-leading functionality.

The Philippine Stock Exchange has signed an agreement with Insular Life Assurance Company Ltd., Globe Telecom and Globaltronics, Inc. to put up a giant P45-million electronic display board at the Insular Life building at the corner of Ayala Avenue and Paseo de Roxas in Makati. This will allow stock market news and information to reach motorists and pedestrians in Makati City’s financial district even while they are in transit, detached from their computers and far from the stock market trading floor. PSE president Francis Lim said the electronic display board is similar to what can be seen in famous landmarks abroad, like the New York Times Square in the US. The PSE is also eyeing other locations for similar electronic boards. In response, Insular Life chairman Vicente Ayllon said his company is putting up a new building in Cebu and is open to hosting another electronic board for the PSE there. Globaltronics invested in the equipment to be used and has a revenue- and time-sharing agreement with the PSE and Insular Life. The PSE will have full control over displays during trading hours, or 9am to 12 noon on weekdays, as well as 20 percent of the remaining hours of the day. (JAL)