DOF to tackle inflation, boost private spending

THE Department of Finance (DOF) is looking to reduce the emerging inflation in the country to boost private spending in its bid to drive economic growth.

Finance Secretary Ralph G. Recto said the government will continue to push forward strategies such as reducing high prices of goods to ensure economic growth and for the Philippines to remain “on track” with its medium- to long-term goals.

“Ensuring that prices of goods remain stable and affordable is crucial to further grow the economy, consequently enabling us to boost revenue collection,” Recto was quoted in a statement that the DOF issued last Wednesday.

He pointed to an initiative called “Reduce Emerging Inflation Now,” or “Rein,” which, Recto added, is the Finance department’s “first order of business,” aimed at lowering food and non-food products.

According to the statement, the Inter-agency Committee on Inflation and Market Outlook (IAC-IMO), which is co-chaired by the Secretaries of Finance and the National Economic and Development Authority (NEDA), will gather on February 16, to discuss and coordinate efforts on the implementation of direct measures in curbing inflation.

Meanwhile, Recto noted he is targeting to achieve his goal in 2024 of reaching P4.3 trillion in revenue collection. According to the DOF, this could be achieved by making tax administration more effective and by pushing for the passage of the DOF’S refined priority tax measures, which will promote fiscal sustainability without impeding economic growth and aggravating inflation.

“Increasing revenues will mean reducing the deficit and our dependence on debt. We will grow the economy by boosting investments. This will broaden the tax base and improve tax collections,” the Finance chief said.

Recto said he would act “swiftly” on investments through the timely and efficient implementation of the Corporate Recovery and Tax Incentives for Enterprises law; amendments to the Public Service Act, the Retail Trade Liberalization Act and the Foreign Investments Act (FIA); and, the revised implementing rules and regulations (IRR) of the Renewable Energy Act.

He added that to attract more investments and further improve the employment conditions in the country, the Philippines will make use of the vote of confidence of multilateral organizations and credit rating agencies, the macroeconomic fundamentals, and fiscal policies.

“The decelerating inf lation, robust and young labor market, implementation of creative reforms to boost revenue collections, improvements in the ease of doing business, sound external conditions, and strong financial sector should prepare the red carpet for the influx of new investments and business that will provide highquality jobs and increase household income to protect the purchasing power of every Filipino,” Recto said.

In addition, the DOF said the government will execute its budget for 2024 by ensuring that projects are implemented on schedule in order to prevent government underspending and maintain its commitment to delivering highyielding projects.

Accompanying this goal, the DOF added, is “through partnering with local government units and improved governance, specifically on regulatory quality, voice and accountability, and control of corruption.”