Finance Secretary Recto Implements Growth-Enhancing Strategies In First 100 Days

Finance Secretary Ralph G. Recto has embarked on a mission to foster inclusive growth and sustainable development for all Filipinos through the introduction of growth-enhancing strategies within the government's economic roadmap during his initial 100 days in office.

The revised targets aim for a more realistic and responsive approach to the needs of the Filipino populace, projecting an expansion of 6.0% to 7.0% in 2024, with subsequent growth in the following years. I Photo: Department of Finance Facebook

Recto emphasized the importance of recalibrating fiscal targets to ensure strategic growth-enhancing fiscal consolidation that directly benefits the Filipino people.

Collaborating with the Development Budget Coordination Committee (DBCC) economic managers, he recently adjusted the government's medium-term macroeconomic assumptions, fiscal program, and growth targets for 2024 to 2028 to align with domestic and global developments.

The revised targets aim for a more realistic and responsive approach to the needs of the Filipino populace, projecting an expansion of 6.0% to 7.0% in 2024, with subsequent growth in the following years.

Revenue performance is expected to increase steadily, supporting a sustainable decrease in the fiscal deficit and debt-to-GDP ratio.

To achieve these goals, Recto has focused on revenue collection, targeting PHP 4.3 trillion this year. Immediate actions included improving revenue administration efficiency at the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) and pursuing data-sharing agreements to enhance accuracy and compliance.

Furthermore, Recto secured support from international financial institutions such as the World Bank Group (WBG) and the Asian Development Bank (ADB) to advance the digitalization of the tax system, ensuring enhanced revenue generation.

In terms of tax policy, Recto emphasized fairness and practicality, refining existing measures to broaden the tax base while avoiding unnecessary burden on consumers and taxpayers.

The Department of Finance (DOF) prioritized revenue measures such as VAT on nonresident Digital Service Providers, excise tax on single-use plastics, and comprehensive tax reform programs.

Recto also intensified efforts to increase non-tax revenue collections, notably through higher dividend remittances from government-owned corporations (GOCCs) and the mobilization of non-tax revenues to support priority programs and projects.

Moreover, Recto emphasized prudent debt management and strategic fundraising to meet financing requirements, including a 75:25 borrowing mix in favor of domestic sources.

The successful issuance of Retail Treasury Bonds (RTB 30) highlighted the government's commitment to financial inclusion and stability.

Addressing inflation remained a top priority, with Recto introducing the Reduce Emerging Inflation Now (REIN) plan to proactively manage price pressures through the Inter-Agency Committee on Inflation and Market Outlook (IAC-IMO).

Recto's initiatives during his first 100 days in office reflect a concerted effort to drive sustainable economic growth, enhance revenue generation, and prioritize the welfare of all Filipinos in building a resilient and inclusive economy for the future.