Budget deficit widens to P7.8bn on diamond slump
Friday, October 11, 2019
Jwaneng Mine traditionally anchors the country's production
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.
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...