Finance Secretary Carlos Dominguez III has said the recent upgrade by S&P Global Ratings on the Philippines’ credit standing signals international confidence in the Duterte administration’s prudent fiscal management and places the country above the ranks of other large and robust economies like Italy, Portugal and Indonesia.
The Philippines’ rating upgrade from “BBB” to “BBB+” with a “stable” outlook is only a notch below the investment grade of such economies as Spain and Malaysia, and is on par with the credit rating of Peru, Thailand and Mexico, said Dominguez during a luncheon he hosted for former Finance Secretaries and senior DOF officials in celebration of the 122nd anniversary of the Department of Finance (DOF).
This credit rating upgrade undeniably recognizes President Duterte’s solid commitment to the bold reforms and sound economic policies outlined in his 10-point socioeconomic agenda and also acknowledges his strong political will to get these done at the soonest possible time, Dominguez noted during the affair, which was held at the headquarters in Manila.
“It is also a tribute to the hard work put in over the years by our predecessors and the men and women who continue to work for this Department,” said Dominguez during the event.
The luncheon meeting, which provided Dominguez an opportunity to seek the advice and tap the wisdom of former DOF secretaries and undersecretaries, is an annual event held as part of the Department’s anniversary celebration.
Former Prime Minister and Finance Secretary Cesar Virata; former Finance Secretaries Jose Isidro Camacho, Edgardo Espiritu, Jose Pardo, and Margarito Teves; and former Finance Undersecretary Romeo Bernardo were present at the luncheon.
During the meeting, Dominguez assured his predecessors of the DOF’s continuing commitment to fiscal discipline even as the government substantially increases its spending on infrastructure and human capital development.
“We will continue working down our debt service even as we empower progressive governance with our recurrent revenues,” Dominguez said.
He further said that the next few years will even be more crucial as the Duterte administration aims to build on its achievements to realize it’s goal of “a truly inclusive and progressive economy” for the people.
According to Dominguez, the DOF expects the Congress to approve the legislation of the remaining components of the Duterte administration’s comprehensive tax reform program (CTRP).
“The positive results of the TRAIN (Tax Reform for Acceleration and Inclusion) Law provide the best arguments for completing the tax reform. We will again seek your wisdom and support to triumph over the political challenges,” Dominguez told his predecessors.
Dominguez cited as among the achievements of the Duterte administration the implementation of TRAIN, which returned some P111 billion to the pockets of millions of individual taxpayers, and resulted in a 108-percent achievement of the law’s revenue target.
He likewise mentioned the congressional approval of the law that imposed tariffs on rice imports in lieu of quantitative restrictions (QRs), which he described as a “politically difficult” reform measure as it took more than 30 years for the government under various administrations to have it enacted.
“While the achievements mentioned are certainly encouraging, we will not allow ourselves to become complacent. Even more work is needed to ensure that we reap the benefits of such accomplishments and continue to institute and implement meaningful reforms–not just to get that sterling ‘A’ rating, but, more importantly, to achieve a more comfortable life for all law-abiding Filipinos,” Dominguez said.
He said the administration will continue to implement its strategic, high-impact infrastructure projects under the “Build, Build, Build” program, guided by its “fast and sure” principle, confident that the vast multiplier effects of these projects will sustain the country’s rapid economic growth.
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