Next Finance chief to inherit yawning budget deficit

MANILA, Philippines - The Aquino administration will inherit a widening budget deficit and huge holes in the government’s revenue stream because of rampant corruption and smuggling but despite the challenging task, old names are floating as the next Finance Secretary.

Employees and officials at the Department of Finance widely expect former Finance Secretary Cesar Purisima to head the department again.

Purisima could not be reached for comment yesterday but prior to the proclamation of President-elect Benigno “Noynoy” Aquino III, he declined to comment when asked about the issue.

Purisima, who was appointed as Trade Secretary in 2004 and as Finance Secretary in 2005, had come from the private sector, one of the country’s biggest auditing firms, Sycip, Gorres & Velayo.   

A close ally of Senator Mar Roxas II, Purisima played an instrumental role in the campaign of the Aquino-Roxas tandem.

Insiders in the Aquino-Roxas camp said that Purisima is among the economic advisers of the Aquino and Roxas during the campaign.

Aside from Purisima, the name of former Finance Secretary Roberto de Ocampo has also been floating as the next Finance chief. De Ocampo served as Finance chief from 1992 to 1998.

However, employees and officials at the department believe that the Finance portfolio will go to Purisima because of his instrumental role in the campaign and his experience in pushing for the increase in value-added tax (VAT).

Employees are on a wait-and-see stance. Some want Purisima back because of his passion and intellect but others said he is not very much a team player as he insists on doing what he wants to without consulting people at the department.

“He is very prolific but sometimes, he insists on doing things his way,” said a Finance department source who has worked with Purisima.

Whoever will be next Finance Secretary will have a difficult task ahead.

The government is projected to end the year with a budget deficit of P293 billion given the need to spend and problematic revenues.

From January to April, the budget deficit stood at P131.6 billion, narrower than the deficit ceiling for the period of P145.2 billion but higher than the deficit in the same period last year of P111.8 billion.