MANILA – The World Bank (WB) extended to the Philippines a loan in the amount of $300 million (approximately P13.47 billion) for programs aimed at decreasing red tape, beefing-up infrastructure, and increasing tax collection.
The Department of Finance (DOF) said the in a statement made on Friday that the Washington DC-based lending institution’s Third Development Policy Loan (DPL 3) given to the Philippines will “boost fiscal sustainability and governance transparency.”
Finance Secretary Cesar V. Purisima, who signed the loan agreement on behalf of the Philippine government last Oct. 14said: “DPL 3’s strong focus on fiscal sustainability, infrastructure, human capital and good governance enables the Philippines to boost our inclusive growth agenda as we reach the tailend of this administration. This is consistent with the Philippines’ partnership with the World Bank in ensuring our economic turnaround story translate into real and sustainable gains for the Filipino people.”
The DOF added that the DPL3 will help to generate “sustained and inclusive growth and job creation through increasing physical and human capital investment, as well as tackling regulatory barriers in land, labor and capital markets.”
Specifically, the loan is expected to:
• aid in strengthening priority public investment implementation
• reduce the overall cost of doing business; which would, in turn, stimulate the creation of jobs and help alleviate the problem of poverty in the country
• develop human capital among the poor
• promote fiscal transparency and an atmosphere of good governance, and
• solidify fiscal sustainability through revenue mobilization and risk management
The DOF noted that the DPL3 will focus on initiatives geared at infrastructure development; programs to establish more efficient processes of business registration for micro, small and medium enterprises; institutional and policy developments to increase human capital; projects to foster transparency; steps to improve tax collection, and the furtherance of integrated fiscal risk management strategy.