The government is prepared to sell more assets if tax collection slows and affect its spending program this year.

Finance secretary Margarito Teves said the sale will finance jump-starting the economy to offset the expected slowdown in the US.

The government raised more than P90 billion in state assets last year, enabling it to increase revenues by 16 percent to P1.136 trillion, surpassing the goal of P1.118 trillion.

This year, it is aiming to raise P1.236 trillion. It is targeting to raise just P29.6 billion from the sale of state assets this year.

The government in January generated P8.7 billion from the sale of its shares in Meralco. Teves said the lease of the Fujimi property in Japan and the sale of other real estate properties will enable the government to meet this target.

Meanwhile, should the need arise, Teves said the government will accelerate the sale of PNOC-EC, Bilibid property in Muntinlupa and its shares in San Miguel Corp.

Teves said additional funds will be needed if the government pursues its plan to give cash subsidy to the poor if rice prices continue rising.

Moreover, the government, he said, is preparing for the possible impact of a prolonged US slowdown on the domestic economy.

Spending on infrastructure, as well as on social services, will help pump-prime the economy and shield it from the US economic slowdown, Teves said.

Teves said the government may also resort to borrowing more domestically if the funds could not be raised from either the tax revenues or privatization.

"But it’s the last option. Up to how much, we still don’t know yet it depends on how much we need," Teves said.

Teves said with increased spending, the government may remain in deficit and fail its balanced-budget target this year.

However, the government is committed to raising the P1.236-trillion revenue program this year to support the programmed expenditures, he said.

"It’s possible we can incur a deficit but right now our focus is to generate revenues to support spending. Our focus today is still try to maintain that fiscal discipline as reflected in a balanced budget," Teves said.

Teves said while current data does not point to a US recession yet, the government will just aim to accelerate spending in the first half.

"It’s too early to speculate on what will happen. There is a plan to increase spending, but right now our focus is still to work on the budget, have an early spending, and generate revenues from tax and non-tax sources," Teves said.