The Bureau of Internal Revenue needs to fast track its modernization efforts to help boost tax collection and enforcement as the agency has “no room to fail” in the Marcos administration’s fiscal goals, according to Finance Secretary Benjamin Diokno.
The government’s economic team led by Diokno is aiming to reduce the budget deficit from the current 6.4 percent toward the prepandemic level of 3 percent by 2028.
The team also wants to reduce the government’s outstanding debt from the current 63.5-percent of gross domestic product (GDP) to less than 60 percent—a level considered internationally as “prudent”—by 2025.
Diokno said expanding the country’s fiscal space would allow the government to maintain a high level of investment in infrastructure at 5 percent to 6 percent of GDP yearly.
The Finance chief said the Marcos administrations’ goals were “ambitious but definitely achievable with the right fiscal tools and the right people.
Diokno added the medium-term fiscal framework would support growth targets.
“This framework serves as the blueprint to reduce fiscal deficit, promote fiscal sustainability and enable robust economic growth,” he said. “In order for the Philippines to keep its fiscal vitals in fighting shape, there is no room for the BIR to fail.”
BIR Commissioner Lilia Guillermo said digitalization has allowed the agency to sustain operations throughout the pandemic as it was able to collect P2.1 trillion, surpassing the target by P5.1 billion.