Recto says PH on track to meet fiscal goals for 2024

A WALK IN THE PARK FOR RECTO: Former Sen. Ralph Recto swiftly breezes through the confirmation proceedings as Secretary of the Department of Finance Wednesday, March 13, 2024 by the bicameral Commission on Appointments. Recto previously served as the representative of Batangas’ 6th district and as the House Deputy Speaker from 2022 to 2024 before President Ferdinand “Bongbong” Marcos Jr. appointed him to the post. He also previously served three terms in the Senate: from 2001 to 2007 and from 2010 to 2022 and had served as Senate President Pro Tempore and Senate Minority Leader. He started his political career as the representative of Batangas’ 4th district from 1992 to 2001. (Bibo Nueva España/Senate PRIB)

MANILA, Philippines — The Philippines is on track to meet its fiscal program for 2024, Finance Secretary Ralph Recto said on Tuesday, citing the government’s “robust revenue effort” and “manageable deficit level.”

“So far, we are on track to meet our fiscal program for the year, having already achieved half of our targets,” said Recto at the Senate panel on finance’s hearing on Tuesday.

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According to Recto, tax collections from the Bureau of Internal Revenue and the Bureau of Customs totaled P1.84 trillion, which is 10 percent higher than in 2023.

He attributed this to the country’s continued efforts to digitalization and plugging leakages in the tax system.

As for non-tax revenues, the finance chief said a substantial growth of 63.3 percent amounting to P314.2 billion was likewise recorded after the Department of Finance increased government-owned and controlled corporations’ dividends from 50 to 75 percent.

“This robust revenue performance placed us among Asia’s top revenue-to-gross domestic product ratios at 17.1 percent for the first half of the year. And this is above our full-year target of 16.1 percent,” said Recto.

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Recto likewise noted that the country’s fiscal deficit remained “very manageable” at P613.9 billion as of June 2024.

“Over the medium term, the government expects revenues to grow by an average of 10.3 percent annually. Revenues as a percentage of gross domestic product will also increase from 16.1 percent in 2024 to 17.0 percent  in 2028,” he added.

Before he ended his presentation, Recto emphasized that the administration’s spending will continue to prioritize the following: education, infrastructure, food security, social protection, and national security.