AMID demands for accountability and reform in the government, the Philippine economy remains ‘fundamentally strong’ and has stable foundations with opportunities for investments intact, according to Finance Secretary Ralph G. Recto.
In a statement on Monday, Recto noted that inflation stands low at 1.7 percent and at 0.4 percent for the bottom 30 percent of households in October.
‘This stability allows the Bangko Sentral ng Pilipinas [BSP] more room to cut interest rates, boosting household spending and economic growth,’ said Recto, who also sits as a member of the highest policy-making body Monetary Board.
The Monetary Board has reduced the key policy rate by 25 basis points to 4.75 percent, and is further expected to deliver a rate cut in its next rate-setting meeting on December 11.
While Recto expects the economy to grow at 4.7 to 4.8 percent, below the government’s target of 5.5 to 6.5 percent, by the end of the year, he said trust will keep investments coming in, businesses expanding and jobs growing.
‘We assure the Filipino people that our fiscal consolidation path is on track, and everything moving forward is on the upside. We will bring down our deficit and debt gradually, while creating more jobs, increasing our people’s income, and lifting more Filipinos out of poverty,’ Recto added.
The real interest rate the government will pay is estimated at 3.3 percent by the end of the year. ‘That means we have more than enough capacity to pay what we owe, and our debt remains manageable, stable, and sustainable for the long run,’ the Finance chief said.
‘We hear you loud and clear. The Filipino people demand accountability and reform, and we answer with decisive action. For these are non-negotiables for long-term growth,’ Recto said.
In the short term, Recto said the government is implementing a catch-up plan to align disbursements with national priorities and boost economic growth.
‘As budget hearings continue, we urge Congress to pass a 2026 national budget that reflects our priorities and reform agenda,’ Recto said.
Spending with the highest multiplier effects must be prioritized, as well as enforcing fiscal discipline and imposing targeted austerity on travel, maintenance and other operating expenses and non-essential expenses in the government, Recto added.
‘The national budget is the most powerful lever of our growth story-and we will wield it responsibly. These are your hard-earned money entrusted to us, and we will make sure to protect it and spend on programs and projects that will benefit each and every one of you,’ the Finance chief said.
Recto assured the public that essential and targeted public services will remain uninterrupted, including high-impact infrastructure projects and official development assistance projects.
Importantly, Recto said the government heeds the call of the public and will prioritize good governance reforms moving forward.
As such, the Marcos Jr. administration will pursue the anti-political dynasty law, as well as rationalize and strengthen the party-list system.
It will also enforce campaign finance transparency, institutionalize freedom of information and remove all unprogrammed appropriations, except those essential for emergencies, Recto said.
The Department of Finance is also strengthening its initiatives against tax evasion and smuggling, with the Bureaus of Internal Revenue and Customs pursuing major cases.
‘No delays. No exemptions. No sacred cows. We will see results,’ Recto said.
‘This is a government that listens, acts decisively, and puts the national interest above all else. And this is a government that will deliver on its promises-without fear, without favor, without hesitation,’ he added.