IMF warns of Philippines debt crisis

The International Monetary Fund has expressed "serious concerns" over the Philippines government's budget and indebtedness in a report.

In a regular report, the IMF said the government's plan to cut its deficit to 4.5 percent of gross domestic product this year from 4.9 percent in 2003 is not ambitious enough. The IMF urged the Philippines government to raise taxes on cigarettes, alcohol and petroleum.

An unstable political environment, heavy debt and fiscal deficit dampened the economic outloo