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WASHINGTON—The Philippines may delay plans to sell
government assets, including a stake in
food-and-beverage company San Miguel Corp., as the
global economic slowdown and credit squeeze sap investor
appetite, Finance Secretary Gary Teves said.
The
government will instead increase tax collection to fund
its deficit, Teves said. Revenue from asset sales will
drop to about P30 billion ($722 million) this year,
compared with more than P90 billion in 2007, Teves said
in an interview Saturday in
Washington,
where he was attending the spring meetings of the
International Monetary Fund and World Bank.
“The
prospects for privatization this year are not as
favorable as they were in 2007,” Teves said.
Tax
collection probably rose 14 percent in the first
quarter, in part as the government cracked down on
evaders, Deputy Commissioner Nelson Aspe of the Bureau
of Internal Revenue (BIR) said last week.
The BIR,
which collects about 70 percent of government revenue,
probably raised P163 billion in the first quarter, Aspe
said. That compares with P143 billion a year earlier.
“We
don’t want to telegraph that we’re going to rely on
privatization as that will slow down the tempo of
activity from the revenue side,” Teves said.
“Policymakers would prefer us to move ahead on improving
our tax revenue than relying on privatization.”
The
government is also concerned about slowing growth and
accelerating inflation, Teves said. Growth in the
$117-billion economy may slow to 6.3 percent to 7
percent this year, from a 31-year high of 7.3 percent
last year.
“We’re
still looking at the low end of the target,” Teves said.
“It’s not going to be easy.” Growth in the Southeast
Asian economy will be powered by investment in
infrastructure, agriculture and mining, Teves said.
The
appreciation of the Philippine peso,
Asia’s best-performing currency against the dollar over the last
12 months, is weighing on the country’s exports, Teves
said. The currency has gained more than 15 percent in
the past year. (Bloomberg) |
