Finance Secretary Ralph G. Recto received a smooth-sailing confirmation from the Commission on Appointments (CA) on March 13, 2024 and has committed to pursuing growth-enhancing fiscal consolidation through plugging tax leaks, improving tax administration, preventing wasteful expenditures, exercising prudent debt management, and boosting investments.

These strategies were underscored by the Finance Chief during his opening statement to achieve the ultimate objective of promoting inclusive growth that improves the quality of life of all Filipinos and secures the future of generations to come.

To finance the PHP 5.767 trillion national budget for this year, Secretary Recto said the Department of Finance (DOF) is faced with the huge task of raising PHP 15.8 billion daily.

Of the total, PHP 11.7 billion will be supported by tax revenues, while PHP 4.0 billion will be sourced from borrowings.

These funds will be mainly utilized to fund sustained investments in infrastructure and human capital development.

Secretary Recto noted that the urge to inflict taxes is evident as the needs of the growing population outpace revenues. However, he emphasized that such must take a backseat to grow the economy by prioritizing plugging tax leaks, improving tax administration, and preventing wasteful expenditures.

The Finance Chief has given marching orders to the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) to accelerate their respective digitalization initiatives to enhance tax and customs administration efficiency and ease the payment of taxes for taxpayers.

Through the implementation of the Ease of Paying Taxes (EOPT) Act, processes were streamlined and taxpayers can now file and pay their taxes electronically anywhere in the country.

“[T]he best way to inculcate tax obedience is still to promote ease of payment, and to show that taxes that are efficiently collected are effectively spent,” Secretary Recto added.

“This covers ODA [official development assistance] projects because the people must be told not only where their taxes go, but where the debts they are paying for also go,” he stressed.

The DOF has already begun its series of visits to ODA-funded projects starting with the Metro Manila Subway Project (MMSP) on February 26, 2024 to ensure its efficient implementation so that Filipinos can benefit from the project at the soonest possible time.

Along with enhanced tax administration, the DOF has been pushing for the passage of its refined priority tax measures in Congress that are meant to “maximize the gains, minimize the pain, and institute fairness and fiscal consolidation”.

These priority tax measures include the proposed value-added tax (VAT) on digital service providers (DSP); the imposition of excise tax on single-use plastics (SUPs); Package 4 of the Comprehensive Tax Reform Program (CTRP); the Rationalization of the Mining Fiscal Regime; and the reform on the Motor Vehicle Users’ Charge (MVUC).

In an earlier statement, the Finance Chief said he refined the measures to consider the current economic situation while taking into account the unintended consequences these proposals may have in terms of affecting inflation and growth in certain sectors.

Secretary Recto urged Congress to pass all the priority reforms within the year.

“[T]ogether we can develop strategies to efficiently mobilize fiscal resources and prevent leakages so we can finance growth, manage debt and protect our people in these challenging times,” he emphasized.

The Finance Chief also said that the DOF prioritizes curbing inflation through its comprehensive plan––the Reduce Emerging Inflation Now (REIN)––to protect the purchasing power of Filipinos, especially the vulnerable.

“​​After all, inflation is an unlegislated tax the people should not bear,” the Finance Chief said.

Meanwhile, Secretary Recto aims to achieve investments-led growth to create quality jobs for the people through improvements in the regulatory regime, reduction in the cost of doing business, and addressing constraints.

“In the words of the President, replacing red tape with a red carpet, but, if I may add, without sweeping the unsavory under the rug or trampling rights and rules,” he said.

During the deliberation, no question was raised by the House panel towards Secretary Recto’s confirmation as a manifestation of support.

During the plenary session, Senate President Juan Miguel “Migz” Zubiri, who is Chairperson of the CA, expressed utmost faith in Secretary Recto, saying, “This is what we need from our Secretary of Finance––someone who has the mind for the numbers, but whose heart is firmly set to uplift the lives of the people. Someone who will work not only towards the upward trajectory of our economy but also ensure that whatever growth rate we achieve as a nation will be felt by lower income and marginalized sectors as well.”

CA Committee on Finance Chairperson, Senator Ramon “Bong” Revilla, Jr., likewise expressed his strong support for Secretary Recto’s appointment, saying, “You have undeniably proven yourself over your years of top-caliber public service, and your statement today solidifies this, and all the more convinces us of how truly qualified and competent you are. When sound fiscal policy is pushed for by a numbers man like you, we are confident that we are in good hands.”

“There’s no denying that our country continues to stand on economic gains reached through his efforts and we are certain that these are exactly what he would bring to the table as Secretary of the Department of Finance,” the Senator added.

Other CA members such as Senator Jinggoy Ejercito Estrada also expressed their confidence in Secretary Recto saying, “I am in full support of his confirmation and I believe that he is the right choice to lead the Department of Finance.”

“Walang dahilan na hindi aprubahan ang ating appointee,” Senator Risa Hontiveros added.

Representative Jose Gay Padiernos entrusted the Philippine economy in the hands of the newly-appointed Secretary, saying, “Hindi na po kami magtatanong sa part po ng Kongreso. Ito po ay manifestation of support sa ating Secretary. Nakita naman natin very much qualified [ang] Secretary. Bahala ka na sa ating ekonomiya.”

“I am confident that Secretary Recto will bring a fresh perspective and innovative solutions to address the country’s post-pandemic economic challenges. His vision for growth, keen observation, and his strategic and intellectual approach to economic policies will undoubtedly steer this nation toward greater prosperity and financial stability,” Senator Ronald “Bato” Dela Rosa said.

“Secretary Ralph Recto understands his job very well and is able to explain complicated things in [a] simple manner to our people,” Representative Albert S. Garcia remarked.

“His appointment promises a continuation of strong economic management and strategic initiatives aimed to uplift the lives of our citizens and ensure a stable and prosperous future for our country,” said Senator Cynthia Villar who co-sponsored the confirmation.

“With him at the helm of the DOF, we can be assured that despite fiscal pressures, more taxes will not be the first option of this government, but its last resort,” Senator Grace Poe remarked.

“I have no doubt that he will bring meaningful and genuine reforms which will surely benefit the Department,” said Senator Christopher Bong Go as he manifested his support for the Finance Chief.

“No one deserves that post in the Department of Finance more than the great Ralph Recto,” Senator Joel Villanueva said.

Senator Loren Legarda also attested to Secretary Recto’s unmatched dedication to public service and wisdom as they championed laws together, saying, “We are entrusting the future of our nation’s economy to someone who has a keen understanding of economic policies and has a proven track record in crafting legislation that fosters sustainable and inclusive growth.”

Meanwhile, Senator Raffy Tulfo, who has no prior relationship with the Secretary, gave his stamp of approval, saying, “The job of the Secretary of Finance must be given to someone who the people can trust––yung sisiguraduhing ang dapat makolekta ay nakokolekta, yung dapat paglaanan ng pera ay napaglalaanan ng pera, at yung handang sagutin tungkol sa lahat ng lumalabas na pera sa kaban ng bayan.”

“I second the motion for his appointment, confident in his ability to manage our government resources in pursuit of a better economy,” Representative Ramon Guico, Jr. said.

“While this job requires a Finance Secretary to be a dealer of hope, he must also be a teller of truth. While this may sound like a campaign sortie spiel, which I know I will never ever deliver in the future, let me assure you that I will perform my task with honesty and hard work,” Secretary Recto said in closing.