DoF: Aggressive collection effort needed for recovery

FINANCE Secretary Carlos G. Dominguez III said the government revenue agencies need to turn in strong performances this year to support infrastructure and healthcare spending, which are critical to the economic recovery.

“Essential to our fiscal consolidation program is the improvement of our revenue collections to meet our expenditure requirements. This year will be critical,” he said at a Bureau of Internal Revenue (BIR) event on Thursday.

“We need to begin outgrowing our debt by restoring our high growth,” he added.

He said the spending priorities are infrastructure modernization, public health, and social services.

“We have to continue procuring vaccines for our people. We need to rebuild the communities damaged by severe weather events caused by climate change.” Mr. Dominguez said.

The BIR collected P2.08 trillion in 2021, up 6.51% year on year, according to Treasury data.

Overall tax collections rose 9.4% to P2.74 trillion last year.

Meanwhile, outstanding debt hit P11.73 trillion at the end 2021, up nearly 20%.

The Department of Finance (DoF) has been preparing a fiscal consolidation program to manage the national debt.

“We have already formulated a program to limit the budget deficit and improve the debt-to-GDP ratio,” Mr. Dominguez said. “This is part of our transition plan for the next administration.”

Rene E. Ofreneo, president of the Freedom from Debt Coalition, has said that the government should manage its spending by tweaking infrastructure investment.

The government needs to reduce big-ticket projects that benefit only a few in favor of community-based programs that help protect citizens against the pandemic and climate change, he said.

Separately, BIR Commissioner Caesar R. Dulay at the same event proposed a review of legislation to increase salaries at the bureau.

“I would like to see, maybe, a review of the salary standardization act so that (BIR employees’) compensation (is) commensurate to their responsibilities and efforts,” he said.

Salaries at the bureau, he said, “pale in comparison” to other government agencies. — Jenina P. Ibañez