Finance Secretary Carlos Dominguez III (Photo courtesy of DOF)
NEW CLARK CITY -- Secretary Carlos Dominguez III has bared plans for the Department of Finance (DOF) to work more closely with members of the incoming 18th Congress in passing further reforms that would set stronger economic foundations to sustain and even boost the country’s high and inclusive growth, the DOF said in a statement on Thursday.
Dominguez reiterated during a legislators' forum his proposal for a closer working relationship between President Duterte's economic team and the new set of lawmakers "so that we can mutually move forward with legislation that really contributes to the common good.”
The DOF, Dominguez said, is currently reorganizing its personnel so it could assign more full-time directors and staff to engage with lawmakers on a weekly basis, with the goal of ensuring that the Legislative and Executive departments could mutually move ahead in passing laws to sustain high growth, attract more investments, create more jobs, and achieve financial inclusion for all Filipinos.
“Together, we can ensure the sustainability of the high and inclusive economic growth rate we enjoy today,” Dominguez said during the “Vision into Reality” forum organized here Tuesday for members of the House of Representatives in the next Congress.
“The matter is in your hands. All you have to do is ask us how we can help you, and together we can make a better life for the Filipinos,” Dominguez added.
In the forum hosted by stalwarts of various political parties, Dominguez also described the outgoing 17th Congress -- which passed several game-changing reforms such as the Tax Reform for Acceleration and Inclusion (TRAIN) Act, the Universal Health Care (UHC) program, a new Sin Tax Reform Law that imposed higher taxes on tobacco products, and the law liberalizing rice imports -- as among the most productive in the country.
The TRAIN Law, Dominguez noted, not only produced a more reliable revenue stream for government and provided solid footing for President Duterte’s “Build, Build, Build” infrastructure program, but also put more money in the pockets of 99 percent of Filipino workers in the amount of PHP111 billion combined, or the equivalent of a 14th month pay for taxpayers.
He said the congressional approval of the TRAIN Law was among the major considerations underlying Standard & Poor’s decision to raise the Philippines’ long-term credit rating from “BBB” to a higher investment grade of “BBB+” with a “stable” outlook, which is the highest that the country has received so far and only a notch below the coveted A rating accorded the world's most stable economies.
Recently, Fitch Ratings affirmed the Philippines’ “BBB” rating with a “stable” outlook, which is yet another recognition of the government’s commitment to building a strong fiscal position, Dominguez said.
The TRAIN Law, Dominguez said, will help sustain fiscal stability for the country, just like the proposal in 2005 by Sen. Ralph Recto to reform the value-added tax (VAT) system now benefits the people, the government and the domestic economy by way of low borrowing rates.
He noted that from paying 4.7 percent in interest premiums in 2004, the Philippines now shells out only around 1 percent more than the normal interest rate that the United States pays, which means more money for the government to spend on its priority programs of infrastructure, education and healthcare.
The rice tariffication law, on the other hand, is another reform measure that has made rice more affordable to Filipinos, making retail prices cheaper by PHP10 per kilo than when market rates were at their peak last year, Dominguez said.
“Nobody mentioned the price of rice as a political issue (in the last elections) and that is because the rice business is now an ordinary business no longer controlled by the National Food Authority (NFA) or any other government agency,” Dominguez said. (PR)
