PH’s fiscal position still strong: Dominguez

FILE: Department of Finance (DOF) Secretary Carlos Dominguez III (KING RODRIGUEZ/ Presidential Photo)

MANILA — Finance Secretary Carlos Dominguez III has assured senators that the Philippines’ fiscal position remains strong, with revenues expected to be above target, the debt burden continuing its downtrend and the government’s spending program sustainable over the medium term.

In a briefing by members of the Development Budget Coordination Committee (DBCC) before the Senate committee on finance, he said the Duterte administration expects tax revenues to grow by 12.7 percent in 2019 on the back of the projected collection growths, by the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC), of a respective 13.1 percent and 11.3 percent for next year.

From January to June this year, total revenue collections reached PHP1.41 trillion, which is 20 percent higher than the same period last year and exceeded the target by 8 percent or PHP105.7 billion, Dominguez said in a statement Tuesday.

“This administration is committed to long-term fiscal sustainability. Be assured we continue to exercise fiscal responsibility and maintain sound fiscal policies to support higher and more inclusive growth,” Dominguez said during the DBCC briefing on President Rodrigo Duterte’s proposed 2019 national expenditure program. “Fiscal strategy remains to be prudent, sustainable, and supportive of the government’s development objectives.”

To generate additional revenue streams that will enable the government to sustain its massive infrastructure buildup and increased spending on human capital development, Dominguez said the Duterte administration will push for the passage into law of the rest of the packages under its comprehensive tax reform program (CTRP).

He said the government aims to raise PHP3.2 trillion in revenues in 2019, including about PHP181.4 billion from tax reform, which will help sustain its strong fiscal performance and aggressive spending plan through 2022.

Dominguez said this revenue goal is equivalent to 16.5 percent of the gross domestic product, which is an improvement from the 15.6 percent attained in 2017 and this year’s target of 16.2 percent.

The projected amount of PHP181.

4 billion will come from the Tax Reform for Acceleration and Inclusion Act, as well as from the proposed tax amnesty program and adjustments in the Motor Vehicle Users Charge, which comprise Package 1B of the Duterte administration’s CTRP, Dominguez said.