The Philippines remains a bright spot in the Asia region despite a gloomy global economic outlook due to geopolitical tensions and external pressures, according to Finance Secretary Ralph Recto.
Recto made this statement in a speech at the Manila Overseas Press Club (MOPC) Finance Night on March 20, 2024 at the Fairmont Hotel in Makati City.
Recto said his optimism is supported by projections from multilateral organizations that expect the Philippines to be a frontrunner in Southeast Asia, with a forecasted gross domestic product (GDP) growth of 5.8 percent to 6.3 percent in 2024.
He said international research organizations also expect the Philippines to join the ranks of the world’s 20 largest economies by mid-century.
Goldman Sachs predicted that the Philippines would be the 14th largest economy globally by 2075, he said.
“Asia’s economic powerhouses, particularly the Philippines, are set to lead growth over the next decades,” Recto said.
He said the Marcos administration is determined to achieve or even surpass these forecasts via a set of growth-enhancing strategies such as bolstering macroeconomic strength through prudent fiscal management and direct accelerated spending program towards infrastructure and human capital development.
The government will also implement game-changing reforms that will drive investment-led growth benefitting all Filipinos, Recto said.
Recto said the government is reviewing the Medium-Term Fiscal Framework (MTFF) to ensure that fiscal targets reflect realities globally and domestically and that growth-enhancing fiscal consolidation is pursued.
He said the government would also keep inflation manageable and within the government’s target band of 2 percent to 4 percent through the Reduce Emerging Inflation Now (REIN) plan.
The plan involves proactively preparing the country to mitigate the effects of El Niño on inflation through strengthening agricultural production to ensure food security.
He said to fund the increasing needs of the Filipino people, the DOF would focus on growing revenues by plugging tax leaks, improving tax administration and preventing wasteful expenditures.
Recto said five tax reform measures are underway to improve revenue mobilization, further sharpen the government’s fiscal toolkit and modernize the Philippine tax system.
These include the 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).