The government is rolling out a comprehensive catch-up plan to accelerate economic growth by aligning budget disbursements with national priorities, Finance Secretary Ralph Recto said Monday.
Recto said the economy remains fundamentally strong, with stable foundations and intact investment opportunities.
He cited the government’s commitment to good governance, transparency and accountability, characterizing the current situation as a government reforming itself from within, rather than a leadership crisis.
Rector urged Congress to pass a 2026 national budget that reflects the government’s priorities and reform agenda.
He called for prioritizing spending with the highest multiplier effects, enforcing fiscal discipline and imposing targeted austerity measures on travel, maintenance and other operating expenses (MOOE) and non-essential government expenses.
The government, Recto said, will work with Congress on key legislative reforms. These include pursuing the anti-political dynasty law, rationalizing and strengthening the party-list system, enforcing campaign finance transparency, institutionalizing freedom of information and, most importantly, eliminating all unprogrammed appropriations except those essential for emergencies.
Recto also announced an intensified fight against tax evasion and smuggling. The Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) will aggressively pursue major cases with time-bound investigations and swift prosecution, promising no delays, exemptions, or sacred cows, he said.
Recto assured the public that the country’s fiscal consolidation path is on track, adding that everything moving forward is on the upside.
The government plans to gradually bring down the deficit and debt while creating more jobs, increasing income, and lifting more Filipinos out of poverty.
He said inflation remains very low at 1.7 percent overall and at -0.4 percent for the bottom 30 percent of households in October. This stability gives the Bangko Sentral ng Pilipinas (BSP) room to cut interest rates, which would boost household spending and economic growth.
The economy is also growing much faster than the true cost of the debt, Recto said. By the end of 2025, the real interest rate is estimated at only 3.3 percent, while the economy is expected to grow by 4.7 to 4.8 percent.
This indicates the capacity to pay debts is more than sufficient, keeping the debt manageable, stable, and sustainable for the long run, he said.
