New Finance Secretary Ralph Recto on Friday vowed to do his best to hit the government’s target to collect around P4.235 trillion in revenues this year.
Recto committed this after taking his oath before President Marcos as secretary of the Department of Finance (DOF) in a ceremony at Malacañan Palace in Manila.
“[I would] make sure that money is spent wisely, the idea is to stretch every peso, including acting faster on investment,” he told the media after his oathtaking.
The revenue target for 2024 was earlier projected by the Development Budget Coordination Committee.
As the new Finance chief, Recto said he would follow the National Development Plan crafted by the administration and ensure the continued implementation of the macrofiscal framework.
President Marcos vouched for Recto’s competence, saying the latter has a “true understanding of how the Philippine economy works.”
“In terms of what Secretary Ralph has to offer, I think there is no need to enumerate that,” he told the Palace reporters.
“He has a true understanding of our economy. He has a true understanding of how our Philippine economy works. And I think that is the quality that he will bring to this,” Mr. Marcos added.
The President also touted Recto’s experience as a former directorgeneral of the National Economic and Development Authority and as a legislator, stressing that there are “so many new ideas and new commitments” the new finance chief has made to transform the Philippine economy.
He said Recto, who has had a “remarkable” career in public service and excelled in various roles within the government, would be a “major player” in sustaining the country’s economic growth, reaching the medium-term fiscal target, and achieving developmental goals.
Legislators from both sides of the aisle and major business groups on Friday welcomed the appointment of Recto, who was Deputy Speaker representing the province of Batangas before being called to the Cabinet, as the new Finance secretary.
“Warmest congratulations to former senator and current Deputy Speaker Ralph Recto on his well-deserved appointment as the new secretary of the Department of Finance. His extensive knowledge and profound grasp of economics uniquely qualify him for this crucial role, making him the most fitting candidate,” Speaker Ferdinand Martin Romualdez said Friday.
Romualdez said Recto has consistently exhibited outstandingleadership, particularly in matters related to the nation’s fiscal policies.
“As the former chairperson of the Senate committee on ways and means, he played a pivotal role in shaping legislation that significantly impacted our country’s economic landscape.”
“Secretary Recto’s contributions extend beyond legislative accomplishments. His exemplary tenure as socioeconomic planning secretary and director-general of the National Economic and Development Authority reflects his competence and commitment to formulating strategies for sustainable growth and progress.
“A visionary economist, Secretary Recto has played a key role in crafting policies aligned with the needs of the people. His dedication to sound economic principles, coupled with genuine concern for the welfare of every Filipino, has earned him respect from colleagues and constituents alike.”
Basilan Rep. Mujiv Hataman also praised the new Finance secretary.
“Senator Recto’s track record as a legislator is remarkable, having chaired several key committees in the Senate, including on government corporations and public enterprises and science and technology…. His comprehensive understanding of the intricate details of economic and financial matters is undoubtedly an asset as we navigate the complex challenges facing our nation.”
Romualdez also cited Recto’s leadership skills.
“His election as one of our deputy speakers in the 19th Congress by colleagues in the House of Representatives is a testament to his recognized capabilities,” he said.
Senators, meanwhile, said Recto would sail through the Commission on Appointments.
Senate President Pro Tempore Loren Legarda said she will not only support Recto but will also be a co-sponsor in his confirmation.
Senate President Juan Miguel Zubiri, Senate Majority Leader Joel Villanueva, Senators Francis Escudero, Juan Edgardo Angara, Nancy Binay, Grace Poe, and Senate Minority Leader Aquilino Pimentel III also said they would back Recto’s appointment.
Legarda said the Department of Finance is in good hands with Recto at its helm.
Angara said having served with Recto for several years in the Senate, he can attest to the new Finance secretary’s political acumen and sterling intellectual abilities. “His knowledge of the political and fiscal structures of the country will serve us well in the future,” he said.
Binay said Recto is the perfect choice for the position having a good grasp of the different scenarios, and the realities being faced by the country in these challenging times.
“His expertise in finance and economics, and his experience in public administration are of great value to the administration’s economic team,” she added.
She said Recto was their “go-to numbers-genius guy” in the Senate when it came to the budget, taxation, and finance.
Poe said Recto had the qualities to steer the country onto a progressive path.
“We laud the choice of Secretary Ralph Recto as one of the country’s top economic managers,” she said. “We don’t only have an assertive and bold Batangueno at the helm of the DOF (Department of Finance), but a seasoned lawmaker.’
Pimentel said it was a well-deserved appointment, but added: “I commiserate with Secretary Recto on his assumption to a difficult job at a very turbulent moment.”
Senator Jinggoy Estrada agreed that Recto would have easy sailing at the Commission on Appointments, particularly with his qualifications and the tradition of parliamentary courtesy.
Former Senate President Franklin Drilon said Recto is unquestionably the ideal choice to lead the DOF.
“Having served alongside him in the Senate for an impressive 12 years – three years as Senate President Pro-Tempore when I was Senate President – we have witnessed firsthand his profound understanding of the needs of the Filipino people,” he said.
He pointed out that Recto’s extensive experience in crafting financial policies, as he exhibited as a senator and as the NEDA chief, will help steer the Philippine economy back onto the path of progress.
President Marcos said he had offered outgoing DOF chief Benjamin Diokno a position in the Maharlika Investment Corp., where he could serve as a liaison between the government and the private sector.
Diokno, however, begged off, saying this was not his specialty—and would thus remain in the Monetary Board, the policy-setting body of the Bangko Sentral ng Pilipinas.
The President thanked Diokno for his contributions as part of the government’s economic team.
“He was due to retire the middle of last year, but we, I think we all ganged up on him and asked him, [to] please continue [at the] Department of Finance simply because we had to get the economy, we had to get our policies onto the right track, and he has done a splendid job as secretary,” the President said.
“Being one of our country’s pillars of economic management, we shall continue to rely on your expertise and exuberance as a member now of the Monetary Board,” he continued.
Diokno said he is proud of the current state of the finance sector, saying the department is in a better state of affairs than when he inherited the post.
Since taking the helm at the DOF on July 1, 2022, Diokno has committed to pursuing the administration’s goal of reducing the deficit-to-GDP ratio to 3 percent, achieving upper middle-income status by 2025, and bringing down the incidence of poverty to a single-digit level by the end of the President’s term.
Diokno led the economic team in crafting the Philippines’ first Medium-Term Fiscal Framework (MTFF) during the administration’s first month in office.
The MTFF embodies the government’s commitment to pursuing fiscal consolidation, ensuring that sustainability is given priority in the management of finances without sacrificing economic growth.
Improving revenue generation and boosting government spending are at the core of the MTFF.
In a separate statement, Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman said she supports the appointment of Recto as Finance chief as Diokno returns to the Bangko Sentral ng Pilipinas as a member of the Monetary Board.
“We defer to the wisdom of the President on these matters so… Secretary Recto can expect our full support,” she said.
She also expressed gratitude to Diokno, calling him the “guiding light of the Philippine economic team.”
“Secretary Diokno established a very good foundation for our economic transformation so I am confident we can continue this under Secretary Recto, who is a legislator with executive branch experience and can merge these experiences to pursue our desired reforms,” Pangandaman added.
The Bankers Association of the Philippines (BAP) also welcomed the appointment of Recto, saying he is equipped with the necessary experience to promote economic growth through the implementation of effective fiscal policy, having served as secretary general of NEDA and a senator who advocated pro-growth laws.
“While the Philippine economy continues to grow due to its strong fundamentals, it is currently facing local and global economic headwinds such as inflation. The country needs an experienced economist who can navigate the ongoing challenges of this operating environment, and Secretary Recto is an ideal fit for this job,” said Jose Teodoro Limcaoco, BAP president.
The BAP also acknowledged Diokno’s contributions, noting that he was a key figure in steering the economy through challenging times.
Trade Secretary Fred Pascual also expressed his full support for Recto’s appointment.
He emphasized the Department of Trade’s commitment to fostering inclusive and sustainable economic growth and pledged to continue collaborating with the economic team to realize the President’s priorities.
Recto’s appointment was also welcomed by the Philippine Chamber of Commerce and Industry (PCCI) and the Makati Business Club (MBC), two of the country’s major business groups.
PCCI president Enunina V. Mangio lauded his qualifications, describing him as a valuable asset to President Marcos’ economic team.
“Senator Recto is perfectly suited for the job. He has the experience, expertise and political backing that are critical if he is to oversee the strengthening of the country’s economic and fiscal positions,” he said. “He has led the National Economic and Development Authority and authored and sponsored landmark measures that have helped the country weather economic crises even as some were unpopular,” she said.
Mangio expressed the hope that Recto will give priority to policies and reforms that support business growth and ensure sustained economic progress.
She reiterated PCCI’s commitment to working closely with the new Finance secretary and the government, as a whole, to drive the economy forward.
The MAP noted that Recto’s previous roles in NEDA, the House of Representatives, and the Senate, including his authorship of the expanded VAT law of 2006 (RA 9337), will serve the administration and country well.
“We pledge our assistance and wish him success in his new, important role, including continuous improvement of laws and policies to attract job-creating investment and expansion. We look forward to working with him, other recent appointees such as Presidential Special Assistant Frederick Go and Agriculture Secretary Francis Laurel, and the rest of the economic team,” MBC said.
Both groups also thanked Diokno for his service as Finance secretary in the critical first year of the Marcos administration.
