MANILA, Philippines - The national government's budget deficit to gross domestic product (GDP) ratio reached 4.88% in the first 6 months, already exceeding the ceiling for the whole year, data from the Department of Finance showed.

The January to June deficit to GDP ratio was way above the Development Budget Coordination Committee's target of 3.9% for 2010.

The first-half deficit reached P196.7 billion, P51.6 billion higher than what was programmed, while the country's economy was estimated to amount to P4.031 trillion during the period.

The government has decided to keep its deficit ceiling of P325 billion this year, and plans to achieve this by containing the financing gap at P20 billion per month until December.

President Benigno Aquino III earlier said he wants to narrow the country's deficit to GDP ratio to 2% by 2013.

He promised to go after tax evaders and corrupt officials to shore up much-needed government revenues and plug the budget shortfall.

Next year, the deficit is expected to reach P226 billion, equivalent to 2.5% of GDP, Finance Secretary Cesar Purisima said.

This assuming the government meets its 7% GDP growth target for 2011.

"Normally, as the economy grows, everything being equal, the revenue will increase and hopefully, the deficit will decrease."

Purisima said growth would be driven by the successful implementation of projects under the Public-Private Partnerships (PPPs) program.

Up to P200-B in PPPs

Budget and Management Secretary Florencio Abad said the government is looking at generating P180 billion to P200 billion in PPPs next year.

Abad said the government has initially listed 10 projects for PPPs.

"The Aquino administration economic managers are working double time to be able to put together a package of at least 10 strategic PPP projects for implementation in 2011, from an initial list of 70 projects," he said.

In the reformed 2011 budget, a total of P15 billion is proposed for PPP strategic support projects, or P5 billion each under the Department of Public Works and Highways, Department of Transportation and Communication and Department of Agriculture.