Recto secures commitments from ADB on digitalization, human capital and infra development, and disaster preparedness programs

Finance Secretary Ralph G. Recto has secured commitments from Asian Development Bank (ADB) President Masatsugu Asakawa to support key priority development programs for the Philippines, focusing on boosting digitalization, improving human capital and infrastructure, and enhancing disaster preparedness.

In a high-level meeting with the ADB and the country’s economic managers on April 17, 2024, President Asakawa said the above key strategic priorities will be reflected and aligned in its upcoming Country Partnership Strategy (CPS) for the Philippines.

Secretary Recto welcomed the said key areas and emphasized that they encapsulate the development priorities of the Marcos, Jr. administration.

He also expressed enthusiasm in continuing closer cooperation with the ADB team as the CPS is being finalized.

The Finance Chief sought more support from the ADB for the government’s digitalization program to improve tax collection efficiency, especially now that a fourth of Filipino consumers have moved to e-commerce.

He emphasized that slow adaptation to digitalization amidst the rising e-commerce would result in an immense potential revenue leakage.

To this end, the ADB has committed to closely work with the Philippine government on a proposed Digital Transformation Project for the Bureau of Internal Revenue (BIR) as part of the Bank’s long-standing support on the country’s tax reform initiatives and domestic resource mobilization efforts.

Meanwhile, he urged the Bank to increase its assistance in strengthening the country’s human capital development, particularly in education and nutrition programs to uplift the quality of life of every Filipino.

With the recent enactment of the Public-Private Partnership (PPP) Code, the Finance Chief also encouraged the ADB to help the country attract more investors for its flagship infrastructure projects, especially in power and physical and digital connectivity, to boost competitiveness.

He likewise called for strengthened collaboration in harnessing renewable energy resources to accelerate the Philippines’ transition to clean energy.

The Department of Finance (DOF) also conveyed and sought the Bank’s support for the Philippines’ bid to host