Fiscal position remains robust, says DoF

The Department of Finance (DoF) refuted reports of new tax impositions, asserting that the government's strong financial standing eliminates the immediate need for additional revenue measures.

Finance Secretary Ralph Recto stated that the government is effectively managing its finances, ensuring public needs are met without burdening citizens with new taxes.

Recto, in a statement, stressed the DoF's role in maintaining fiscal discipline to secure sufficient resources for the economy, particularly during times of global economic uncertainty stemming from political tensions, high interest rates, and unpredictable trade policies.

"Strategic measures were prepared to ensure fiscal sustainability and provide necessary buffers amid rising global economic uncertainty... But given our current strong fiscal performance, these are not needed at this time," Recto said.

He highlighted the significant double-digit growth in tax collections during the first quarter of the year as evidence of the country's fiscal stability.

Total tax collections for the first quarter of 2025 reached P931.5 billion, a 13.55 percent increase. The Bureau of Internal Revenue (BIR) collected P690.4 billion, marking a 16.67 percent rise compared to the same period last year. The Bureau of Customs (BoC) also saw a 5.72 percent growth in collections, reaching P231.4 billion.

The DoF attributed this growth to the revenue agencies' ongoing efforts to enhance tax administration, digitalization and enforcement.

"At this point, current revenues are more than sufficient to support our expenditure requirements. We are meeting our obligations, funding key programs, and growing the economy without having to impose new taxes on our kababayan," Recto said.

He added that the government is also "decisively managing our deficit level, while maintaining a sustainable debt trajectory aligned with our Medium-Term Fiscal Framework (MTFF)."

To sustain this fiscal momentum, the DoF is focused on the successful implementation of measures aimed at attracting and retaining investments and generating more revenue. These include the CREATE MORE Act, the Ease of Paying Taxes (EOPT) Act, amendments to the Foreign Investment Act, the Retail Trade Liberalization Act, the Public Service Act, and the Public-Private Partnership (PPP) Code.

The DoF will also continue to explore and strengthen non-tax revenue sources to meet the targets outlined in the Budget of Expenditures and Sources of Financing (BESF).

Amid the upcoming national elections in less than three weeks, Recto cautioned the public against disinformation.

"Disinformation tends to proliferate during the elections, especially online. With regard to fiscal policy such as taxes, we encourage the public to be more discerning, to verify information on social media, and to rely on statements from official government channels," he said.

Recto assured the public that recent fiscal policies have strengthened the economy and that the government remains committed to balancing growth and stability without imposing new taxes.