Recto Eyes DOF-Congress Partnership To Pass Vital Reform Measures

Finance Secretary Ralph Recto has called on Congress to partner with the Department of Finance to pave the way for the swift passage of reform measures needed to reduce the country's deficit and debts.

Recto highlighted the Philippines’ strong economic performance, decelerating inflation, and record-low unemployment numbers. I Photo: Department of Finance Facebook

“None of these crucial measures will come to fruition without your help and backing. I, therefore, call on our friends in Congress to partner with us in securing the immediate passage of these reforms,” Recto said in his speech during the 2024 Philippine Economic Outlook Briefing and Luncheon at the Admiral Hotel in Manila.

The DOF organized the briefing with the aim of helping the senior staff of legislators get a better grasp of the DOF's priority bills.

During the briefing, resource persons from the DOF’s offices and attached agencies discussed the salient features of priority bills, as well as fiscal impact and target legislative timelines.

Recto highlighted the Philippines’ strong economic performance, decelerating inflation, and record-low unemployment numbers.

He said the government also has a reliable flow of revenues, while the current national government debt-to-GDP (gross domestic product) and deficit-to-GDP ratios are within the parameters of the Medium-Term Fiscal Framework (MTFF).

But, he emphasized the need to continue addressing inflation and to further grow government revenue collections that can be used to finance economic development and the people’s needs.

“Fiscal sustainability can only be achieved if we install a system that guarantees fairer and more efficient tax administration,” he underscored. He explained that these reforms include Package 3 of the Comprehensive Tax Reform Program (CTRP) or Real Property Valuation Reform (RPVAR); VAT (Value-Added Tax) on Digital Service Providers (DSP); the Rationalization of the Mining Fiscal Regime; the Single-Use Plastic (SUP) Bags Tax Act; and Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy.

“These reforms will not only finance development but will reduce the deficit and our dependence on debt,” the Finance chief said.

Recto revealed, “The DOF is currently improving its proposals and expressed his intent to visit the Senate soon to personally discuss the reforms with senators.”

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