MANILA: The Department of Finance (DOF) Philippines plans to further shore up revenue collection while continually reducing the share of the government debt to the economy in 2015 to sustain the inroads made this year.
Finance Undersecretary Gil S. Beltran said in a speech before DOF employees last Monday the DOF achieved a great deal in 2014. With Secretary Purisima at the helm, the country’s macrofundamentals are in their best shape ever. Inflation is on its way down. Interest rates net of inflation remain one of the lowest in Asia despite QE (quantitative easing) tapering in the US. The exchange rate is stable on account of strong BOP (balance of payments) inflows, and the fiscal position is at its strongest.
Beltran also said in 2015, we should work harder to push the revenue effort further up by at least one-half percentage point of GDP (gross domestic product), reduce the NG (national government) debt ratio by at least a percentage point, and further expand fiscal space for infrastructure and social services.
This year, the government targets to collect P1.88 trillion in taxes on top of P138.1 billion in non tax revenues. Latest DOF data also showed that the revenue collection jumped 12.6 percent as of the end of October.
Further as for the national debt to GDP ratio, the country’s debt burden stood at 37.3 percent at the end of the first half, six percentage points better than the 44.3 percent posted in 2010, or the year President Aquino assumed office.
We will expand the clientele of our microfinance products further, introduce new micro insurance products, and reduce risks of disasters. Beltran said besides improvements in the fiscal space, the DOF would work for better access to financing among more Filipinos in 2015, especially those in disaster prone areas.