Department of Finance (DOF) Secretary Ralph Recto has assured the House of Representatives that the government is on track to achieving its targets under the refined Medium-Term Fiscal Program that gradually reduces deficit and debt, creates more jobs, increases incomes, and reduces poverty.
“When I took on the Finance Secretary hat, my first priority was to recalibrate our growth and fiscal targets to ensure that they are achievable and adaptable to external shocks. Our refined Medium-Term Fiscal Program reduces our deficit and debt gradually in a realistic manner; while creating more jobs, increasing our people’s incomes, and decreasing poverty in the process,” he said during the FY 2025 National Budget Deliberations on Monday.
The program took into account ongoing external trends that heavily influence the global economy at present while still recovering from the pandemic, such as geopolitical tensions.
“And under this, we have ensured that every peso to be collected or borrowed will be stretched to deliver the biggest bang per buck for the Filipino people,” he added.
To fund this enormous budget of PHP 5.77 trillion in 2024, the Department of Finance (DOF) scouted for more resources without inflicting new taxes on the people at present or bequeathing debts to be paid by future generations.
This is why the DOF hiked the government-owned and -controlled corporations’ (GOCCs) dividend rates to 75 percent from 50 percent in 2024 as among the major sources of non-tax revenues.
Ako Bicol party-list Rep. Elizaldy Co, chair of the House appropriations committee, said the proposed P6.352 trillion budget for 2025, a crucial step to crafting a national expenditure program that would stimulate the economy, ensure social equity, and sustain development.
The proposed expenditure plan for next year assumes inflation will ease further and move within the Bangko Sentral ng Pilipinas’ target range of 2.0 percent to 4.0 percent as recent cut in rice tariff, Dubai crude oil to trade within USD65-USD85 a barrel, and growth of 6.5-7.5 percent next year from 6.0-7.0 percent target this year.
“The proposed national budget is more than just a financial document. It reflects our priorities, commitments and vision for the future,” Co said.
He said the 2025 budget could help more Filipinos hurdle the poverty threshold, especially after government action that brought down rice tariff to 15 percent starting July 16 this year from 35 percent.
“It (the budget) outlines government’s plan to stimulate economic growth, enhance social services, improve infrastructure and ensure sustainable development. In these challenging times, a well-crafted budget is essential for addressing our country’s pressing issues from economic recovery to social equity and food security,” said Co.
He asked his colleagues in the House to carefully analyze the numbers presented by the government’s economic managers who are part of the Development Budget Coordinating Committee to ensure a “realistic budget” that could be supported by revenues.
“As we embark on this crucial task, let us approach it with a sense of responsibility and urgency. Our goal is to approve a budget that not only meets the immediate needs of our constituents but also lays the foundation for long-term growth and prosperity consistent with our vision in Ambition 2040,” said Co, referring to the vision for a more prosperous Philippines.
Ambisyon Natin 2040 envisions a Philippines as a middle income country, with income levels at least three-fold in 2040 compared to its level in 2015.
“Our duty is ensure that our nation’s financial resources are allocated effectively and responsibly to meet the needs and aspirations of our people,” Co stressed.
