Recto urges Congress to quickly pass key reforms
At A Glance
- Former legislator and now Finance Secretary Ralph G. Recto has called on Congress to swiftly pass the crucial reforms that will reduce the country's deficit and debt levels.<br>Recto said he is seeking to visit the upper house soon to personally discuss the reforms with senators.<br>Among those reforms are Package Three of the Comprehensive Tax Reform Program or Real Property Valuation Reform; VAT on Digital Service Providers; the Rationalization of the Mining Fiscal Regime; the Single-Use Plastic Bags Tax Act; and Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy.<br>The finance chief also emphasized that the country must continue to address inflation and grow its revenue collections to finance economic development.
Finance Secretary Ralph G. Recto has urged Congress to work with the Department of Finance (DOF) to quickly pass key reforms necessary to lower the government’ budget deficit and debt levels.
Recto, who served as a legislator in both the upper and lower houses, said that the DOF is currently improving its proposals for these crucial reforms to present to Congress.
“You already know the drill. None of these crucial measures will come to fruition without your help and backing,” Recto said at the 2024 Philippine Economic Outlook Briefing and Luncheon.
“I, therefore, call on our friends in Congress to partner with us in securing the immediate passage of these reforms,” he added.
Among those reforms are Package Three of the Comprehensive Tax Reform Program or Real Property Valuation Reform; value-added tax (VAT) on Digital Service Providers; the Rationalization of the Mining Fiscal Regime; the Single-Use Plastic 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,” he stated.
The briefing, which was attended by the senior staff of legislators, was conducted to aid them in having a better grasp of the DOF’s priority bills and clarify any misconceptions.
Resource persons from the DOF’s offices and attached agencies discussed these bills’ salient features, fiscal impact, and target legislative timeline.
Recto also acknowledged the country’s strong economic performance, which he said regained momentum from the downturn brought on by the pandemic.
The country’s economic growth stood at 5.9 percent in the third quarter of last year, a turnaround from the second quarter’s 4.3 percent but still lower than the 7.7 percent seen in the third quarter of 2022.
On the other hand, inflation has been decelerating and is expected to decline this year, while unemployment numbers have reached record-low levels, and the employment rate gaining momentum, as external accounts remain robust.
The finance chief also stated the government has a reliable flow of revenues, while its current debt-to-gross domestic product (GDP) and deficit-to-GDP ratios are on track within the targets of the medium-term framework.
However, Recto emphasized that the country must continue to address inflation and further grow its revenue collections to finance economic development and people’s needs.
“[F]iscal sustainability can only be achieved if we install a system that guarantees fairer and more efficient tax administration,” he said.