The Department of Finance’s (DoF) refined Medium-Term Fiscal Program aims to hit the country’s annual revenue targets to “reduce deficit and debt gradually in a realistic manner, while creating more jobs, increasing people’s incomes, and decreasing poverty in the process.”
This was assured by Finance Secretary Ralph Recto who shared a copy of the DoF’s 2025 proposed budget with Senate reporters on Tuesday. Recto emphasized the agency’s priority to become a “steward of nation’s fiscal stability.”
Recto also said touted improving the Philippine economy where more investors are becoming interested in putting up business in the country.
He cited the Japan-based credit watcher Rating and Investment Information Inc. (R&I), which had recently upgraded its Philippine rating.
“Our fiscal discipline already earned us a credit rating upgrade of A minus from R&I — the first under the Marcos Jr. administration,” he said.
The R&I upgraded the Philippines’ foreign currency issuer rating to “A-” with a stable outlook. An “A” rating indicates that the country has “high creditworthiness supported by a few excellent factors with the minus or “—” indicating the relative standing within the rating category.
Upgrade
“This upgrade will also positively affect the lives of Filipinos,” he said, expressing confidence that it would also improve the country’s investments and businesses.
“And this will not be our last upgrade as long as we stick to our Medium-Term Fiscal Program. As this is our blueprint for the road to more As in the near future,” Recto further assured.
In addition, Recto reported that the unemployment rate in the country has been logged to its lowest level at 3.1 percent.
“Our efforts have led to a stronger labor force, a growing middle class, and more comfortable lives for Filipinos,” he stressed.
According to Recto, more than 50.3 million Filipinos are employed, with 63.8 percent of the figure working in the formal sector.
He also said the poverty rate had declined to 15.5 percent.
“We are on our way to reducing the poverty rate to just 9 percent by 2028,” he said.
On track
Recto said the Philippines is “on track” to meeting its fiscal program for this year, citing the robust performances of the Bureau of Internal Revenue, the Bureau of Customs, the Bureau of the Treasury, and several Government-Owned- or Controlled Corporations.
He shared that the country has logged P2.61 trillion in revenue collection for the first seven months of 2024 — 14.8 percent higher than last year. Bureau of Internal Revenue and Burea of Customs collections grew by 11 percent, reaching 2.24 trillion pesos.
Non-tax revenues, on the other hand, recorded a 44.5 percent growth, totaling P368.80 billion.
The dividends from GOCCs contributed much to this increase, he noted.