CUSTOMS, which contributes a fifth of the government’s income, missed its collection goal in the first two months of the year as trade slumped amid dwindling demand.

Taxes on imports in January and February totaled P30.37 billion, missing the agency’s target by P2.88 billion, or about 9 percent, Verne Enciso, spokesman for Commissioner Napoleon Morales, said in a mobile-phone text message yesterday.

Collections fell from a year earlier, he said.

The Philippines expects to post the largest budget deficit since 2004 this year as revenue falters while President Arroyo boosts spending to counter slowing exports and remittances from workers overseas.

Expansion in the $144-billion economy may slow to an eight-year low of as little as 3.7 percent in 2009, the government predicts.

Imports fell for a third month in December as manufacturers facing falling export orders cut purchases of raw materials and parts, and oil prices dropped. Bloomberg