Diokno proud to leave DOF in 'better state of affairs'

MANILA, Philippines — Former finance chief Benjamin Diokno on Friday said that he is pleased to be turning over his seat to the new finance secretary, Ralph Recto, at a "better state of affairs", the Department of Finance (DOF) said in a statement on Friday.

The DOF's statement was released a day after Malacañang confirmed Recto’s appointment as the next finance chief. He took his oath of office on Friday.

In the same statement, Diokno said that he would leave the department in good shape for his successor. 

“I am proud knowing that I will be leaving my post at a time when the Philippine economy, in general, and the DOF, in particular, are in a better state of affairs than when I inherited them,” Diokno said was quoted as saying.

Recto, who is also the current House Deputy Speaker, authored the Expanded Value Added Tax Law in 2001, which increased the value added tax from 10% to 12%.

He was also appointed to head the National Economic and Development Authority in 2008, during the administration of former President Gloria Arroyo.

Before Diokno’s appointment to the Finance department in June 2022, he served as the governor of the Bangko Sentral ng Pilipinas (BSP) under the administration of former President Rodrigo Duterte.

Diokno is also a board member of the Maharlika Investment Corporation in his ex-officio capacity as secretary of finance. 

In a statement of “support” for Recto, Department of Budget and Management (DBM) Secretary Amenah Pangandaman said that Diokno will return as a monetary board member of the BSP.

“He has always been the guiding light of the Philippine economic team,” Pangandaman said, referring to Diokno.

"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," she added.

Business groups in the Philippines also lauded Recto’s appointment as the new finance secretary.

They said that Recto will be a strong player for President Ferdinand Marcos Jr’s economic team as he will play a “critical role” in the “reformation of fiscal and economic