Budget deficit widens to P7.8bn on diamond slump

Jwaneng Mine traditionally anchors the country's production
Jwaneng Mine traditionally anchors the country's production

The Finance and Economic Development ministry expects the 2019-2020 budget to incur a P7.8 billion deficit, up from the P7.3 billion forecast in February, due to a slump in rough diamond sales.

At that figure, the deficit will be the largest the budget has suffered in 11 years and the latest in a series of continuous shortfalls since the start of NDP 11 in the 2017-2018 fiscal year.

Figures contained in the Budget Strategy Paper 2020-2021 released by the Finance Ministry on Tuesday indicates that the deficit this financial year will be anchored on a 21% drop in mineral revenues from P21.1 billion to P16.7 billion.

Editor's Comment
Micro-procurement maze demands urgent reform

Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...

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