“The Department of Finance (DOF) has finished 2014 strong,” DOF Chief Economist and Undersecretary Gil Beltran of the Policy Development and Management Services Group concluded at the DOF year-end performance review last 15 December 2014.

Delivering remarks on Finance Secretary Cesar V. Purisima’s behalf, Beltran noted that achievements in the year 2014 is part of a virtuous cycle sprung by good governance reforms at the start of this administration. Citing the country’s strong macroeconomic fundamentals, Beltran remarked that the DOF has built strong foundations enabling growth and reforms to further pick up in the near future.

“Inflation slowed to 3.7% in November. Interest rates net of inflation remain one of the lowest in Asia despite QE tapering in the United States. The exchange rate is stable on account of strong BOP inflows and the fiscal position is at its strongest (almost in balance at -0.3% of GDP as of end-October) with the NG revenue effort up by 1/2 percentage point (as of October) and the public sector debt ratio at its lowest in 30 years (66.3% for Consolidated Public Sector, 52% for non-financial public sector and 38.1% for consolidated general public sector),” Beltran reported to all DOF employees in attendance at the review.

“We are still keeping a 6% average quarterly growth rate for the entire Aquino administration, and there is headroom to sustain an even higher growth rate in the next two years. The growth rate is also private sector-led, investment-led and broad-based, ensuring growth is sustainable,” Beltran added.

Beltran welcomed the positive response the Philippines received with four credit upgrades, most recently by Moody’s on 11 December 2014 and S&P on 8 May 2014 to a notch above investment grade, the highest rating ever given by both ratings agencies to the country. The Philippines also received upgrades from Japanese R&I and NICE Investors Service of Korea. The World Economic Forum has also recognized the Philippines as the most improved country since 2010 with a 7-slot gain in its 2014 international competitiveness rankings.

“Our ever improving economic trajectory is a turnaround story for the books. History will remember the Philippines as having proven that good governance is indeed good economics. Our reforms have resulted in concrete gains that resonate with the Filipino people: increased fiscal space have enabled us to double our education and triple our health budgets. We stand ready to achieve even more in the next years as the Philippines is already in a virtuous cycle,’ Finance Secretary Cesar V. Purisima said.

The Philippines also received Finance Asia’s Region’s Best Borrower Award for its innovative execution of an accelerated 1-day switch tender offer last January 2014, its first transaction as an investment grade sovereign.

The country was likewise cited by the Economist Intelligence Unit for a financial inclusion policy framework that is among the best three in the world, the best in Asia, and as an acknowledged leader in microinsurance regulation. The GIZ also cited the Philippines as the Asian emerging country with the highest microinsurance outreach as the country recorded 27 million persons covered. The Philippine model is now being used by GIZ in its technical assistance program for neighboring Asian countries.

The DOF also received acclaim for its excellent hosting of the World Economic Forum on East Asia which showcased the country’s emergence as an economic tiger. On the home front, Beltran noted that the DOF also earned accreditation from the Civil Service Commission (CSC) for its appointments which no longer need to undergo CSC approval before they take effect. With this accreditation, the CSC expressed its trust on the personnel screening capabilities of the DOF.

Beltran called on DOF employees to look forward by saying, “With these improvements and citations, the challenge is there for us to outperform ourselves. In 2015, we will work harder to push the revenue effort further up by at least 1/2 percentage point of GDP, reduce the NG debt ratio by at least a percentage point and further expand fiscal space for infrastructure and social services. We will also host the APEC finance ministers’ meeting to showcase our development experience, focusing on more inclusive growth.”

“Seeing the fruits of our labor appear in a virtuous cycle only makes one thing clear: we will roll our sleeves up and hunker down to institutionalize reforms in the tail-end of this administration. Next year, we hope to pass a comprehensive and equitable tax reform package that improves tax administration and revises the tax structure to drive growth and equity for all Filipinos. As we approach the finish line, we will power through with our priorities to modernize the Bureau of Customs, and rationalize fiscal incentives, among other legislative initiatives,” Beltran added.