The Department of Finance (DOF) stated that the government is committed to implementing measures to reduce inflation, thereby stimulating private spending to drive growth and increase government revenues.

In a statement on Wednesday, Jan. 31, Finance Secretary Ralph G. Recto said the government will persist in pursuing measures to enhance economic growth, specifically targeting the issue of high consumer prices.

Recto, as cited by the DOF, emphasized that the primary focus now is to implement the Reduce Emerging Inflation Now (REIN) initiative in order to stimulate private spending.

On Monday, the National Economic and Development Authority (NEDA) expressed concern about the minimal growth in food spending last year attributed to high food prices, despite the recent moderation of inflation.

“Ensuring that prices of goods remain stable and affordable is crucial to further grow the economy, consequently enabling us to boost revenue collection,” Recto said on Monday, Jan. 31.

The Inter-Agency Committee on Inflation and Market Outlook (IAC-IMO), co-chaired by the secretaries of the DOF and NEDA, is slated to convene on Feb. 16 to coordinate efforts aimed at implementing direct measures to address food and non-food inflation.

In 2023, the headline inflation rate, which tracks the surge in prices of goods and services, rose to six percent from 5.8 percent in 2022. The government is now aiming to lower it to its target range of 2.0 percent to 4.0 percent.

Meanwhile, the DOF chief aims to achieve a revenue collection of P4.3 trillion in 2024, driven by improved tax administration efficiency and advocacy for the approval of refined priority tax measures.

“Increasing revenues will mean reducing the deficit and our dependence on debt. We will grow the economy by boosting investments. This will broaden the tax base and improve tax collections,” Recto said.

Recto said they will accelerate investments by promptly enacting the Corporate Recovery and Tax Incentives for Enterprises Act, amending the Public Service Act, Retail Trade Liberalization Act, and Foreign Investments Act.

He also said the government will implement the revised implementing rules and regulations (IRR) of the Renewable Energy Act.

Recto added that the Philippines will take advantage of the vote of confidence of multilateral organizations and credit rating agencies, the strong macroeconomic fundamentals, and sound fiscal policies to attract more investments and further improve the employment conditions in the country.

“The decelerating inflation, robust and young labor market, implementation of creative reforms to boost revenue collections, improvements in the ease of doing business, sound external conditions, and strong financial sector should prepare the red carpet for the influx of new investments and business that will provide high-quality jobs and increase household income to protect the purchasing power of every Filipino,” he said.