‘Economic decisions independent from politics’

March 23, 2024 | 12:00am

MANILA, Philippines — Finance Secretary Ralph Recto has maintained that his decisions will be separated from his long-standing political background as he pushes for the country’s economic progress.

Speaking before members of the Economic Journalists Association of the Philippines, Recto said he deposited his “political habits at the door” upon assuming the role of finance chief. 

Prior to his appointment two months ago, Recto has been known for his extensive political career spanning three decades that led him to pursue key tax measures and economic reforms.

“To those who still doubt, they have to examine how I fared in many legislative skirmishes that I happily waded into in the House and the Senate,” Recto said.

“My decisions were never dependent on where the political wind blows. I am no fan of safe harbors. I believe that to move forward, one must sail against the wind,” he said.

One specific measure may have prevented the Philippines from slipping into a financial crisis, but such a bold move also hurt him politically in 2007.

As a legislator, Recto successfully pushed for the Expanded Value Added Tax Law that raised the VAT to 12 percent from 10 percent and covered additional goods.

“This is not a fortress DOF that is impervious to what is happening outside, where tabletop simulations ignore realities on the ground,” Recto said.

“But it does not mean that I am not cut out to do hard decisions,” he said. 

Recto told business journalists that public interest is better served by a press that is “fair and free and fights, than one that fawns upon and flatters.” 

He also called for fairness, asking the media to call out the Department of Finance when it is wrong but also write about its wins if it did something good.

“I am a believer in the power and utility of critiques – the ones based on facts and not on fiction – because they can polish the rough edges that may hurt the many stakeholders who are impacted by what we do,” Recto said.

“Besides, there is no wiggle room here for spin, as numbers do not lie, and if they’re bad, you cannot browbeat it so it can take another shape. You can only promise to do better,” he said. 

The finance chief said business journalists are the “guardians of context and perspective” thereby shaping how the public understands what is happening around them.

Recto said that if in the process, the press writes something that does not fit into the agency’s message, no qualms will be heard from him.

“Because a public official who complains about the press is like a ship captain who complains about the sea,” he said.

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