PASSAGE OF REFORMS. Finance Secretary Ralph Recto on Thursday (Jan. 18, 2024) cites the importance of passing crucial reforms to reduce the country's debt. He urged Congress to work with the Finance department for the passage of these reforms. (Photo from DOF)
MANILA – Finance Secretary Ralph Recto on Thursday urged Congress to partner with the Department of Finance for the swift passage of reforms needed to reduce the country's deficit and debt levels.
“You already know the drill. 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 briefing was conducted to help senior staff of legislators get a better grasp of the DOF's priority bills.
Resource persons from the DOF’s offices and attached agencies discussed the priority bills’ salient features, fiscal impact and target legislative timeline.
In his speech, Recto highlighted the country's 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).
Recto, however, cited the need to continue addressing inflation and further grow government revenue collections 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 said.
These reforms include the 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 (CREATE MORE).
“These reforms will not only finance development but will reduce the deficit and our dependence on debt,” Recto said.
He said the DOF is currently improving its proposals and expressed his intent to visit the Senate soon to personally discuss the reforms with senators. (PNA)
