Despite huge tax collection shortfall, the Aquino administration is holding on to its promise of no new taxes in raising the badly needed additional revenues, the Department of Finance (DoF) said.

When asked on the government's preparedness to propose an increase in tax, Finance Secretary Cesar V. Purisima said “no, we’re not there because it would be irresponsible to do so.”

Instead, Purisima revealed that the finance department has found other means to raise revenues and contain the ballooning budget deficit, which estimated to reach a record P325 billion this year.

“We can only pull it off with the help of everyone. The potential is clearly there. The tax revenue for the first-half is around 12.8 percent. Clearly we can do much better than that,” Purisima said.

The government is currently active in its campaign against tax evaders, smugglers, and corrupt revenue officials.

But in the first seven-months of 2010, the Aquino administration's budget deficit already amounted to P229.4 billion, or just less than P100 billion to reach its full-year financing gap program of P325 billion.

To resolve the government's problem on revenue generation, Purisima said they are now looking at non-tax revenues of the government.

“I’ve sent requests to all departments to review all their fees and the way they do things. For example, the National Telecommunications Commissions when they grant the right to frequency and the other things they give to telecommunication companies. I’ve asked them to see if they should auction it,” he said.

The same with the Mines and Geosciences Bureau, Purisima said the government may auction-off the country's mining rights.

“Were looking at all potentials across the board,” the official added.

Purisima also said the Aquino administration is also working with the Department of Interior and Local Government (DILG) to make the local government units (LGUs) less dependent to the central government.

He cited LGUs have their own taxing authority, particularly on the real estate taxes. Before introducing additional tax burden to the public, Purisima said the government “needs to expand the tax base” through better monitoring of professionals.