Finance Secretary Carlos Dominguez III listed four main issues that should be monitored carefully by his successor, which include inflation management and addressing climate change.
“The first issue is to keep a close eye on how to grow out of this debt to make sure that the debt we accumulated is going to be a smaller and smaller part of our GDP (gross domestic product) and how to achieve that is to grow at a rate of higher than 6 percent as we have done,” Dominguez said.
“The second issue he will have to deal with is the issue of inflation…the third issue he has to look at is the issue of the exacerbated inequality brought about by Covid-19 within our country and among countries,” he added.
Must be inclusive
According to him, this inequality will be a huge “destabilizing factor,” particularly in the political arena — which closely affects fiscal consolidation and inflation management.
To date, the country’s inflation averaged 4.5 percent, following the recorded 4.6 percent in October 2021, well above the government’s 2 to 4 percent target for the year.
Rounding up his list is heightened attention on the climate change issue.
“Climate change is becoming a bigger and bigger factor in our daily lives. How they will start addressing climate change without stretching the fiscal space of the country is going to be very very tricky,” Dominguez explained.