As the government prepares its transition to the next administration, the country’s socioeconomic planning chief highlighted the importance of maintaining macro fiscal prudence and policy continuity to ensure that gains made so far will be continued in the succeeding term.
Echoing the stance on continuity, the Department of Trade and Industry (DTI) will discuss with the incoming leadership of the agency a list of priority measures that will ensure full economic recovery.
“There are two things that are most important. The first is to ensure a strong macro fiscal foundation,” Karl Kendrick Chua, socioeconomic planning secretary said in a press briefing yesterday.
Chua said reforms enacted under the Duterte administration, such as the comprehensive tax reform program, rice tariffication law, among others “should be retained, not reverse(d).”
“Policy continuity is the most important part. We stand ready to have a dialogue with the transition team of the new administration to discuss details,” he added.
Within the National Economic and Development Authority (NEDA), among the priorities he mentioned include addressing the full economic recovery including the opening of all face-to-face classes, and addressing inflation.
In the medium term, NEDA is proposing to prioritize four measures: pursue smarter infrastructure; improve the regional equity of budget and resources are allocated; pursue the innovation agenda and; address climate change.
Chua also said the rice tariffication law should not be changed as it helps both farmers and consumers.
“We are doing the same model for livestock, dairy, poultry, and so on. And we hope to do that for other crops as well,” Chua said.
Commenting on presidential frontrunner Ferndinand Marcos Jr.’s plan to bring down the price of rice to as low as P20 per kilo, Chua said: “Under the rice tariffication, the programs are expected to increase the yield per hectare from four metric tons to five or six, so that is possible. There are some places in the Philippines that are very competitive and can produce efficiently but there are some places that they don’t have comparative advantage.
Data we are seeing from Department of Agriculture and PhilRice show that it is possible. If our support to rice farmers are very targeted and efficient, then I think that is a possibility.
However, if our support to them comes in the form of production subsidy that does not tie to outputs, then that might be a problem.”
Chua is also pushing three important bills for Congress to consider in the remaining weeks: livestock development and competitiveness bill to address problems on meat prices and the remaining tax reforms.
These are package three on property valuation and package four on passive income.
For DTI Secretary Ramon Lopez, there should “no reversal of policy reforms.”
Lopez said the DTI should continue to bat for the safe reopening opening of the economy while observing minimum public health standards such as wearing of masks, ventilation and vaccination and booster shots.
Lopez said all areas should be downgraded to Alert Level 1 for greater mobility while face- to- face classes should be expanded.
On the policy side, Lopez said the DTI pushes for more budget for modern and advanced production systems as well as support to build up local production capacities and thus reduce imports across all sectors, from agriculture, industry and services.
Support to small and medium enterprises should also be provided for them to level up.
According to Lopez, support should continue to ensure higher yields in the production chain such as inputs for agriculture, machines and equipment for industries and skills training.
Programs started by the DTI on the following must continue, Lopez said: innovation upgrading like the Center for AI (Artificial Intelligence) Research; electronic commerce; electric vehicle ecosystem and creative industries development.
Lopez said the DTI should pursue more initiatives that will ease doing business such as e-government, streamlining and automation of all government transactions
Buy- local policy for specific government procurement should also continue, he said.
For consumer protection, Lopez is hopeful of the passage of Internet Transaction Act during the incoming administration’s term.
The DTI is also calling for the creation pf an Intelligence fund to strengthen campaign against smugglers/ profiteers/ hoarders/ e-commerce scammers while linking operations with other government agencies. Angela Celis and Irma Isip
