BAGUIO CITY – The P300-billion projected budget deficit this year is considered as manageable compared to the budget deficits of other neighboring Southeast Asian countries, Finance Secretary Margarito Teves said here Friday.

Because of the 3.2 percent deficit which is much more than the P250 billion earlier estimated shortfall, the finance official cited the urgent need for lawmakers to immediately pass new tax measures by next year to reduce the budget deficit to at least P130 billion or 1.3 percent of the country’s gross domestic product.

Last October, the national government’s budget deficit was P260 billion which is now more than the earlier projections made by the Arroyo administration’s economic managers.

While admitting it would be difficult for lawmakers to pass new tax reform measures because of its expected impact of their re-election bid, Secretary Teves underscored the new revenue measures is aimed at stabilizing the country’s fiscal position which has been given very satisfactory rating by international financial institutions over the past several years.

Among the tax reform measures being pushed by the finance department include the sin taxes, rationalization of fiscal incentives and simplification of net income taxation for self-employed individuals which could generate over P150 billion in revenues for the government.

However, Teves remains confident the budget deficit could be much lower once the income from the privatization of government assets will be accounted thereby significantly infusing fresh capital to boost the government’s existing fiscal position.

Compared to other neighboring Southeast Asian countries, he disclosed the government’s fiscal position is far better based on the assessment of international funding institutions, thus, the government could easily avail of concessional loans just to offset whatever deficit in the budget.

In order to stay within its estimated budget deficit, Teves directed the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC) to enhance their tax collection efficiencies with only a few days remaining in this year’s calendar so the government will not be over burdened next year.

He downplayed recommendations by some government officials to avail of loans from international funding institutions just to cover up the budget deficit, saying the economic managers are not that desperate to acquire desired loans which could mean putting an added burden to the Filipino people.

He stressed passing new tax reform measures which will tax more the rich than the poor is preferred so that the country will not be over burdened by loans which will be passed on to the next generation of Filipinos.