This second offering of the Annual Budget Analysis Series once again underscores the tight financial position faced by the national government, especially as the level of the country's fiscal deficit continues to rise. The main paper examines some of the new schemes recently taken up by the national government to finance the budget deficit. Whether or not these schemes indeed generate more revenues for the government is taken up in the study. Meanwhile, the accompanying special papers evaluate the capability and absorptive capacity of the Department of Public Works and Highways, and the Department of Health to implement locally funded and foreign-assisted programs and projects. Both studies provide critical information on the extent and magnitude of resource utilization and look into the factors that hinder the full absorption of available resources.