Economic managers, the business community and labor groups have expressed support to the appointment of Ralph Recto as secretary of the Department of Finance (DOF) but are hopeful he will pursue policies and reforms that will support the growth of businesses and will sustain economic growth.
Recto was instrumental for some groundbreaking economic measures like the Expanded Value-Added Tax, the Rice Tarrification Law the Rent Control Act, among others.
Outgoing DOF secretary Benjamin Diokno, meanwhile, said he is now in the “cooling down phase” with his new role as the final member of the central bank’s seven-person policy-making body.
“For the last eight years, I feel like I’ve run non-stop on a treadmill– from (the) Department of Budget and Management (DBM) to Bangko Sentral ng Pilipinas (BSP) at the height of the pandemic, and then DOF. Now, I’m on the cooling down phase of that long run, which I think I truly deserve,” Diokno told reporters in a message.
Secretary Arsenio Balisacan of the National Economic and Development Authority (NEDA) said his agency looks forward to working with Recto to realize the government’s goal of securing a better future for Filipinos through sustained economic growth and inclusion.
Secretary Alfredo Pascual of the Department of Trade and Industry said with Recto’s appointment, the agency will continue to work closely with the economic team in realizing the President’s economic priorities.
Balisacan and Pascual also expressed gratitude to Diokno for his unwavering service as the head of the economic team of the current administration during the past year and a half.
Budget Secretary Amenah Pangandaman for her part acknowledged Diokno’s vision in the crafting of the Medium-Term Fiscal Framework.
“We defer to the wisdom of the President on these matters so as the latest appointee… to the economic team, Secretary Recto can expect our full support,” Pangandaman said.
“Secretary Diokno established a very good foundation for our economic transformation so I am confident we can continue this under Secretary Recto, who is a legislator with Executive branch experience and can merge these experiences to pursue our desired reforms,” she added.
The Philippine Stock Exchange (PSE) meanwhile expressed hope Recto will “fast track fiscal reforms needed to ensure the country’s economic growth, which will help boost investor confidence.”
“As a long-standing public servant, his dedication, hard work, extensive experience and innate desire to uplift the lives of Filipinos will be an invaluable asset to President Marcos’ economic team,” PSE said.
The PSE noted that Recto is “no stranger” to the capital market.
“He is the legislator behind RA (Republic Act) 9243 or the act rationalizing the provisions on the Documentary Stamp Tax of documentary stamp tax exemption for stock transactions through the local stock exchange,” it said.
“We extend our full support and best wishes to Secretary Recto on his new role and look forward to working with him in introducing reforms to further develop the Philippine capital market,” the PSE added.
The Bankers Association of the Philippines said Recto is equipped with the necessary experience to promote Philippine economic growth through the implementation of effective fiscal policy, having served as secretary general of NEDA and as a senator who has advocated for pro-growth laws.
“While the Philippine economy continues to grow due to its strong fundamentals, it is currently facing local and global economic headwinds such as inflation. The country needs an experienced economist who can navigate the ongoing challenges of this operating environment, and Secretary Recto is an ideal fit for this job,” Jose Teodoro “TG” Limcaoco, President of BAP, said.
The Makati Business Club said Recto’s previous stints in NEDA, the House of Representatives, and the Senate – including his authorship of the expanded VAT law of 2006 (RA 9337) – will serve the administration and country well as we address growing financial and economic challenges.
The Philippine Chamber of Commerce and Industry said Recto is perfectly suited for the job, having the experience, expertise and political backing.
The Trade Union Congress of the Philippines (TUCP) said it is ready to work with Recto “on the imperative of bringing down skyrocketing prices of basic goods and services, attracting more and better foreign direct investments, and realizing the investment pledges made that should translate to better quality of life and new, permanent, and decent jobs for Filipino workers and their families. “
“We trust Secretary Recto will engage all stakeholders and spearhead reforms to get to the roots of food and electricity inflation and solidify the Philippines as a global investment hub where the purchasing power, decent employment, and full rights of working families are safeguarded,” TUCP said.
The group said Recto’s flagship fiscal reform program should be amending the Corporate Recovery and Tax Incentives for Enterprises” Act so that fiscal incentives are tied to compliance with core labor standards.
The TUCP also urged Recto to prioritize the allocation of public funds for the “Build, Better, More” infrastructure program. – Ruelle Castro and Irma Isip
