The Commission on Appointments (CA) quickly gave its nod on Wednesday to the ad interim appointment of Department of Finance (DOF) Sec. Ralph Recto.
Speaking before the CA panel presided by Sen. Ramon Revilla, Jr., Recto said his job is not just ‘written in law, but dictated by economic conditions, shaped by what the people want, and directed by the nation’s development plan.’
He said all of these are distilled into this objective: to promote growth that all of our people can benefit from, resulting in the improvement of their lives, and securing the future of generations to come.
In doing these, the former senator said he is guided by the laws passed by Congress. “The same Congress where in whose halls I spent 29 years in forging fiscal and economic reforms we were in dire need of as a nation,” Recto said.
“One such measure, as many of you are well aware of, may have saved the economy from collapse, but did hurt me politically, in the elections of 2007,” said Recto, referring to the VAT (value added tax) law, which he authored.
He also cited that the proposed 2024 national budget of P5.767 trillion translates to average daily spending of P15.8 billion, but only P11.7 billion of which is supportable by revenues, leaving a P4 billion hole which must be plugged by debt.
“But it never crossed my mind at the time that one month later, I will be heading the department that must raise the P15.8 billion daily, from tax collected and money borrowed,” said Recto.
As the needs of our growing population outpace revenues, he said the temptation to inflict taxes is there. But such must take a backseat to growing the economy, plugging tax leaks, improving tax administration, and preventing wasteful expenditures.
As to the pressing issue of inflation, he assured the DOF will continue to employ measures that will shield consumers, especially the vulnerable, from the pain of elevated prices.
He also vowed to boost investments by reducing the cost of doing business, improving the regulatory regime, and ending constraints. At present, Recto said we are still in the economic recovery stage and because of this, there should be no imposition of new taxes.
“Let’s concentrate on our efforts muna (first) in the tax collection efficiency,” he said.
Responding to the query of Sen. Grace Poe on the DOF secretary’s remark to lower the debt-to-GDP (gross domestic product) ratio, Recto said the growth rate of the economy is more vital than the growth of debt.
He emphasized that as long as the spending is proper, there will be economic growth and the ability to pay will improve. Recto is not worried about the country’s debt. In fact, he said 70 percent of our debt we owe to ourselves.
His former colleagues in the Senate unanimously agreed to confirm his appointment, saying he is the right choice for the job. Revilla, who presided over the CA Finance committee hearing, told Recto: “You have undeniably proven yourself over your years of top caliber public service.”