NEWSFLASH

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GOVT EXPENSES RISE BY P32.9-B IN '98

Manila, Dec. 27, 1997 - The combined impact of the peso depreciation, high interest rates and inflation is expected to cause an increase of P32.9 billion in government expenditures next year.

The Department of Budget and Management projects that higher interest rates on government debts will strain the government's P540.8-billion budget for 1998.

Despite these budgetary constraints, however, government economic managers have vowed to formulate an action plan to enable the national government to chalk up a fiscal surplus for next year, primarily through belt-tightening measures and improved revenue collection.

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