Gov’t keeps growth target

The Finance chief said the government spending catch-up plan should contribute to achieving the anticipated growth target.

Although the first two quarters resulted to below-target growth numbers, the economic planners are keeping the 6 to 7 percent expansion goal measured as the gross domestic product (GDP) this year.

This was learned from Finance Secretary Carlos Dominguez III who said the adoption of more reforms under the comprehensive tax reform programs could help lift growth.

“The passage of the remaining tax reform packages and other economic reforms will help us secure the A-minus credit rating within the next two years and achieve our 14 percent poverty target by 2022,” Dominguez said during his meeting last week with congressional leaders, former finance officials and economists.

“There is reason to believe that the winds are in our favor and the stars are all aligned, or as the naval prose goes, here we have fair winds and following seas,” he added.

Also, the Finance chief said the government spending catch-up plan should contribute to achieving the anticipated growth target.

Moreover, the speedy adoption of the proposed 2020 spending plan should help moderate the impact of the budget delay on overall growth in the first few months of the year.

Dominguez likewise said the approval of proposed bills such as the Public Service Act, the Foreign Investments Act and the Retail Trade Act should not only ease restrictions on foreign participation in businesses in the Philippines but help boost economic expansion as well.

“These reforms will further open up the economy to foreign investments and create more and better jobs. Overall, the reforms will also lower prices and improve the quality of products and services in the market,” Dominguez said.

GDP growth in the first two quarters averaged only 5.6 and 5.5 percent respectively, well below the 6 to 7 percent growth target.

The meeting was attended by former Prime MInister Cesar Virata, Sen. Pia Cayetano, Albay Rep. Joey Salceda, former Finance Secretaries Alberto Romulo, Margarito Teves, Roberto de Ocampo and Jose Isidro Camacho.