Recto secures CA approval as Finance secretary

Finance Secretary Ralph Recto, tasked to raise revenues to fund the country’s P15-billion daily spending program this year, on Wednesday scored the approval of the bicameral Commission on Appointments (CA).

The confirmation of Recto, who was sworn in as Finance secretary in January, was recommended to the plenary session of the CA committee on finance headed by Senator Ramon Revilla Jr.

“I take pride in endorsing the distinguished individual who possesses the expertise and commitment needed to lead our nation towards economic prosperity and fiscal stability. With him at the helm, we know that the Department of Finance is in good hands,” Revilla said during the plenary session.

He added that Recto’s pragmatic insights, forward-thinking approach, and ability to collaborate with stakeholders will surely serve as necessary tools to effectively manage the country’s fiscal landscape.

“Indeed, Secretary Recto’s extensive experience in governance, profound perception of economic policies, and innovative approach to financial management make him the ideal Finance Secretary equipped to steer our nation’s financial affairs towards the right direction,” Revilla further said.

Recto was then approved by the plenary, composed of 12 members each from the House and the Senate, with the Senate President — currently held by Senator Juan Miguel Zubiri — as ex officio presiding officer.

Recto was previously elected as the representative for the 6th District of Batangas and the Deputy Speaker at the House of Representatives, during which one of the last measures he pushed for was the P5.76-trillion national budget for 2024.

In his speech, Recto said the year’s budget would translate to an average daily spending of P15.8 billion, but only P11.7 billion of which would be supported by revenues leaving a P4-billion hole to be plugged by debt.

“As the needs of our growing population outpace revenues, the temptation to inflict taxes is there, but such must take a backseat to growing the economy, plugging tax leaks, improving tax administration, and yes, preventing wasteful expenditures through carefully curated projects that only yield economic gains,” he said.

He earlier said that he would not pursue the imposition of additional taxes, as these would be inflationary and it would not be the right time to impose such measures.

Recto also reiterated remarks he made in January, as he said he would prioritize the collection of taxes for the country’s coffers, which he said he would do through improving the efficiency of tax collection.

“Mahalaga ‘yung growth, mahalaga ‘yung lalo na ngayon, we’re still in an economic recovery stage so sa panahon natin ngayon, palagay ko hindi nararapat na masyadong magpataw tayo ng maraming buwis. Let’s concentrate our efforts muna sa tax collection efficiency din,” he added.

(Growth is important especially now, we’re still in an economic recovery stage so during this time, in my opinion it is not right to impose much taxes. Let’s concentrate our efforts first on tax collection efficiency.)

Recto took the helm of the DOF amid the country’s inflationary environment, with the latest print recorded at 3.4% in February, snapping the four-month deceleration streak that started in October 2023.

“As to the pressing issue of inflation, we will continue to employ measures that will shield consumers, especially the vulnerable, from the pain of elevated prices. After all, inflation is an unlegislated tax that people should not bear,” he said.

“But in my mind, the best way to inculcate tax obedience is still to promote ease of payment and to show that taxes that are efficiently collected are efficiently spent,” he added.—AOL, GMA Integrated News