Higher economic growth needs higher state revenues – DOF data

MANILA – – As the Philippine economy continues to grow, with economic managers setting a seven to eight percent Gross Domestic Product (GDP) growth goal for 2018-22, so is the revenue goal to provide the necessary funds for the implementation of programs for more inclusive growth.

Economic managers under the Duterte administration vow to hasten state revenues, with its share on GDP pegged at above 16 percent from next year until 2022.

Department of Finance (DOF) data show that for 2018, total revenues is targeted to account for 16 percent  of GDP and gradually increase to 16.4 percent, 16.8 percent, 17 percent and 17.1 percent for 2019-22, respectively.

These growth rates have included the effect of the tax reform program as well as the veto of President Rodrigo R. Duterte on some items under the first package of tax reform that the Bicameral Conference Committee-approved before end-2017.

Under the approved first package of tax reform, total revenues were set at PHP2.806 trillion for 2018, up from the PHP2.387 trillion emerging figures for 2017.For 2019 until 2022, the figures are PHP3.160 trillion, PHP3.553 trillion, PHP3.956 trillion, and PHP4.414 trillion, respectively.

These figures were higher than the figures set by economic managers during the meeting of the inter-agency Development Budget Coordination Committee (DBCC) last December.

Under the latest DBCC figures, the proposed revenues were set at PHP2.788 trillion for 2018;  PHP3.133 trillion for 2019; PHP3.530 trillion for 2020;  PHP3.929 trillion for 2021;  and for  2022, PHP4.387 trillion.

Budget and Management Secretary Benjamin Diokno earlier said these figures support the current administration’s development objectives, particularly on higher investments on infrastructure and social protection programs.

“We will ensure that all the revenues collected and monies disbursed will be for the benefit of our people,” he said.