INDEPENDENT think tank Ibon Foundation said there is a possibility that the government will resort to more taxes this year to address the fiscal crisis and ensure that it can continue its debt-servicing efforts.

Ibon Research head Jose Enriquez Africa said the government’s full-year 2007 deficit of P9.4 billion is the “lowest in a decade” and that a closer look at the figures foretells a possible fiscal crisis this year.

Africa also said that revenue collections this year may not improve since the government has not been able to address large-scale corruption, as seen in the anomalous ZTE broadband network deal and that the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) still failed to increase their tax collections.

“Revenue collections in the coming year are unlikely to improve because of the Arroyo administration’s dismal record in addressing large-scale corruption, as shown by its alleged attempts to cover up anomalies in the ZTE broadband network deal, plus its continued policy on liberalization, which similarly cost government billions in foregone revenues because of tariff reductions and eliminations,” Africa said in a statement.

Africa said the BIR and the BOC collections in 2006 were substantially lower than government targets. The BIR had a revenue shortfall of P54.3 billion and the BOC, P17.7 billion.

He added that if revenue collections do not improve in 2008, the government will end up with a P68.4-billion deficit.

“Extrapolating revenues without privatization of P1,194 billion on the assumption that revenues increase by 8.1percent in 2008, less budgeted expenditures in the national budget program of P1,227 billion and factoring in targeted privatization revenues of P30 billion.

“This also implies that government faces an underlying budget deficit of P98.4 billion in 2008 if privatization revenues are not factored in,” Ibon said.

Africa said the only reason why the deficit was kept in check was through one-time privatization revenues of P90.6 billion.

He added that without these proceeds from the sale of government assets, the 2007 budget deficit would have reached more than P100 billion.

THE government has secured a $300-million Asian Development Bank loan that will help local government units (LGUs) pursue financing and budget reforms, President Arroyo announced Wednesday.

CEBU CITY—Cebu furniture exporters are pinning their hopes on new markets, particularly in the Middle East and in Russia, to cushion the effects of a reported US recession and the strengthening peso.

FEED millers are asking the Department of Agriculture (DA) to consider the suspension of tariffs levied on alternative raw materials used for making animal feeds to help them cope with the increasing cost of corn both in the local and international market.

ZAMBOANGA CITY—Agriculture Secretary Arthur Yap led the inauguration of a P33-million Zamboanga del Norte corn postharvest processing and trading center, which is expected to raise production of the grain in the province by as much as 10 percent and farmers’ incomes by as high as 50 percent.

INDEPENDENT think tank Ibon Foundation said there is a possibility that the government will resort to more taxes this year to address the fiscal crisis and ensure that it can continue its debt-servicing efforts.

THE national government is still liable for the loan obligations of the National Transmission Corp. (Transco) for existing loans secured prior to Transco’s privatization.

It’s Valentine’s Day and as such, men would try to impress women by taking them out on dates to upscale restaurants where great food, ambience and service are expected.