Finance Secretary Ralph G. Recto has received full support from World Bank Group (WBG) President Ajay Banga on his key priority to fully digitalize the country’s tax system, with the Bank set to assemble a dedicated team to conduct workshop and assist the Department of Finance (DOF) in enhancing its digital infrastructure to improve tax payment and collection efficiency.
During the high-level meeting on April 17, 2024, President Banga expressed willingness to assist the Philippines in its digitalization initiatives to boost revenue generation, underscoring its importance in fixing leakages.
He also emphasized the need to build a solid digital infrastructure in the long term, which involves creating a digital identity, a real-time payment structure, and a reliable document storage system for the government to get citizens on board and enhance the efficiency of public services.
In line with these objectives, the President broached a proposal to form a dedicated World Bank team to work with the government in planning and prioritizing digitalization strategies focusing on increasing revenues and long-term benefits.
Meanwhile, President Banga also expressed his commitment to supporting President Marcos, Jr.’s Build Better More infrastructure program and providing more advisory works on several public-private partnership (PPP) projects.
He is also keen on promoting entrepreneurial opportunities for young people in the country, particularly by establishing entrepreneurial centers and providing wider access to seed capital through partnerships with local venture firms.
Additionally, President Banga offered support for the country’s agriculture sector to improve productivity and profitability to address food security while reducing emissions through technological practices.
The said areas, alongside other key priorities of the Marcos, Jr. administration, will be reflected in the upcoming Country Partnership Framework (CPF) developed by the World Bank for the Philippines.
President Banga has specifically commended the Philippines for not just being a strong partner of the WBG but for making the most of its CPF to drive real action and tangible outcomes.
He also lauded the Philippines’ strong economic growth performance and assured Secretary Recto of the Bank’s continued support as the country advances towards becoming an upper-middle-income economy soon.
As of December 2023, the WB International Bank for Reconstruction and Development (IBRD) is the Philippines’ 3rd largest official development assistance (ODA) partner, with total ODA amounting to USD 8.20 billion.
Joining President Banga during the meeting were International Finance Corporation (IFC) Regional Vice President for Asia and Pacific Riccardo Puliti; WBG Regional Vice President for East Asia and the Pacific Manuela Ferro; Special Adviser to the WBG President Trevor Harris Kincaid; and Chief of Staff Coralie Gevers.
On the Philippine government side, also present during the meeting were Chief-of-Staff and Undersecretary Maria Luwalhati Dorotan Tiuseco; Undersecretary Joven Balbosa; National Treasurer Sharon Almanza; Chief Economic Counselor Domini Velasquez; and WBG Alternate Executive Director (AED) Erwin Sta. Ana.
It was held on the sidelines of the WBG and the International Monetary Fund (IMF) Spring Meetings from April 15-21, 2024 in Washington, D.C.
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