Recto gets smooth-sailing CA confirmation, commits to pursuing growth-enhancing fiscal consolidation

Finance Secretary Ralph G. Recto received a smooth-sailing confirmation from the Commission on Appointments (CA) on March 13, 2024 and has committed to pursuing growth-enhancing fiscal consolidation through plugging tax leaks, improving tax administration, preventing wasteful expenditures, exercising prudent debt management, and boosting investments.

These strategies were underscored by the Finance Chief during his opening statement to achieve the ultimate objective of promoting inclusive growth that improves the quality of life of all Filipinos and secures future generations.

To finance the PHP 5.767 trillion national budget for this year, Secretary Recto said the Department of Finance (DOF) is faced with the huge task of raising PHP 15.8 billion daily.

Of the total, PHP 11.7 billion will be supported by tax revenues, while PHP 4.0 billion will be sourced from borrowings.

These funds will be mainly utilized to fund sustained investments in infrastructure and human capital development.

Secretary Recto noted that the urge to inflict taxes is evident as the needs of the growing population outpace revenues. However, he emphasized that such must take a backseat to grow the economy by prioritizing plugging tax leaks, improving tax administration, and preventing wasteful expenditures.

The Finance Chief has given marching orders to the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) to accelerate their respective digitalization initiatives to enhance tax and customs administration efficiency and ease the payment of taxes for taxpayers.

Through the implementation of the Ease of Paying Taxes (EOPT) Act, processes were streamlined and taxpayers can now file and pay their taxes electronically anywhere in the country.

“[T]he best way to inculcate tax obedience is still to promote ease of payment, and to show that taxes that are efficiently collected are effectively spent,” Secretary Recto added.

“This covers ODA [official development assistance] projects because the people must be told not only where their taxes go, but where the debts they are paying for also go,” he stressed.

The DOF has already begun its series of visits to ODA-funded projects starting with