The Philippine government hopes to reduce the country's budget deficit to 45.8 billion pesos (some 944 million U.S. dollars) in the first quarter of the year, 32 percent lower than what was registered in the same period of 2006.

Budget Secretary Rolando Andaya Jr. on Friday said in a statement that this would be the lowest deficit recorded since Philippine President Gloria Macapagal-Arroyo came to power in 2001.

The Development Budget Coordination Committee said revenues would hit 255.8 billion pesos (5.27 billion U.S. dollars) from January to March this year, 25 percent higher than the 205 billion pesos (4.23 billion U.S. dollars) revenues raised in the same period of 2006.

On the other hand, the Committee said expenditures would increase 10.7 percent to 301.7 billion pesos (6.22 billion U.S. dollars) during the first quarter.

Andaya said the increase in spending will go to infrastructure projects that could be squeezed in before a construction ban takes effect 45 days before and after the May 14 national elections.

The government expects the deficit to hit 63 billion pesos (1.3 billion U.S. dollars), or 0.9 percent of gross domestic product ( GDP), this year paving the way for a balanced budget by the end of 2008, said Andaya.

Last year, the Philippines had a budget deficit of 62.2 billion pesos (1.28 billion U.S. dollars) or 1.04 percent of GDP. This was the lowest deficit level in eight years.

Source: Xinhua