Ralph Recto—Senate PRIB
Ralph Recto’s promise of improved tax collection, an intensified anticorruption campaign and judicious public spending won him the support of the legislative Commission on Appointment (CA), which unanimously affirmed on Wednesday his designation as the 43rd secretary of the Department of Finance (DOF).
“I’m confident that Recto’s extensive experience as a legislator … has prepared him well for this demanding position,” Senate President Juan Miguel Zubiri, who also chairs the CA, said before approving the finance chief’s confirmation.
“When he was in the Senate, [he was] our ‘numbers guy’ not only because he was brilliant in crunching the numbers, but more importantly because he could see the big picture,” he added.
Speaking with reporters later, Recto ruled out the possibility of returning to the legislature in next year’s midterm elections as he expressed his intention to serve as President Marcos’ finance chief until the end of his term in 2028. He also made a bold prediction for the future of the Philippine economy.
READ: CA confirms Ralph Recto as finance chief
“By 2028,” Recto said, “we expect the poverty incidence to go down to 8 to 9 percent from the current 16 percent. And then we will [reach the] upper middle-income status by 2035.”
“By 2050, the Philippines will be the 14th biggest economy in the world. We’re on track. So we will join G20 by 2050 if you follow the trajectory,” he added, referring to the organization of the world’s biggest economies. Before he was appointed head of the President’s economic team in January, Recto was a deputy speaker of the House of Representatives, returning as Batangas representative after completing his two six-year terms as senator.
Addressing his former colleagues, Recto assured the lawmakers anew that the DOF would not push for the passage of new taxes under his watch.
Instead, the finance department would implement “curated projects” aimed at “plugging tax leaks, improving tax administration and preventing wasteful expenditures,” he said.
Pro Cha-cha
The former veteran legislator said the DOF would also craft policies to encourage foreign companies to bring in investments, and he expressed his support for efforts to ease the restrictive economic provisions of the 1987 Constitution.
“We will boost investments by reducing the cost of doing business, improving the regulatory regime and ending constraints,” Recto said.
“In the words of the President, replacing red tape with a red carpet, but, if I may add, without sweeping the unsavory under the rug or trampling rights and rules,” he said.
As traditionally observed during the confirmation of former lawmakers named to Cabinet posts, several members of the House-Senate body wanted to swiftly approve Recto’s appointment without asking him any questions.
However, opposition Sen. Risa Hontiveros posed several policy questions, picking the finance secretary’s mind on his plan to institute reforms in the Bureau of Internal Revenue and Bureau of Customs, both graft-plagued state agencies and the government’s primary sources of revenues.
Responding to Hontiveros’ questions, Recto said the DOF would implement policies to “improve tax administration efficiency” and address the tax gaps in both agencies.