THE government aims to raise P3.2 trillion in revenues in 2019, including about P181.4 billion from tax reform, which will sustain its fiscal performance and spending plan into the medium term, Finance Secretary Carlos Dominguez III told lawmakers on Tuesday.
Dominguez said at the briefing by the interagency Development Budget Coordination Committee (DBCC) at the House of Representatives that this revenue goal is equivalent to 16.5 percent of gross domestic product (GDP), which is an improvement from the 15.6 percent attained in 2017 and this year’s target of 16.2 percent.
The projected amount of P181.4 billion will come from the Tax Reform for Acceleration and Inclusion Act (TRAIN), as well as from the proposed tax amnesty program and adjustments in the Motor Vehicle Users Charge (MVUC), which comprise Package 1B of the Duterte administration’s comprehensive tax reform program (CTRP), Dominguez said.
President Rodrigo Duterte submitted to the Congress last July 23 a P3.757-trillion proposed national budget for 2019.
According to the Finance chief, the government expects tax revenues to grow by 12.7 percent in 2019 as the Bureaus of Internal Revenue (BIR) and of Customs (BOC) are expected to post collection growths of 13.1 percent and 11.3 percent, respectively.
Dominguez informed lawmakers that from January to June of this year, total revenue collection reached P1.41 trillion, which is 20 percent higher than the same period last year and exceeded the target by eight percent or P105.7 billion.
Dominguez also assured lawmakers during the DBCC briefing for the House committee on appropriations that the Philippines’ fiscal position remains strong, with revenues expected to be above target, the debt burden continuing its downtrend and the government’s spending program sustainable over the medium term.
“This administration is committed to long-term fiscal sustainability. Be assured, we will continue to exercise fiscal responsibility and maintain sound fiscal policies to support higher and more inclusive growth,” Dominguez said during the DBCC briefing. “Fiscal strategy remains to be prudent, sustainable, and supportive of the government’s development objectives.”
To generate additional revenue streams that will enable the government to sustain its massive infrastructure buildup and increased spending on human capital development, Dominguez said the Duterte administration will push for the passage into law of the rest of the packages under its CTRP.
“The tax reform will bring about growth with equity and heightened productivity that will help us attain our aspiration to be a high-middle-income country by 2022, lifting one million Filipinos from poverty each year,” Dominguez said.
In 2017, Dominguez said the government attained its highest revenue collection growth of 12.6 percent since 2012.
“Government spending will also continue to be a growth driver for the economy through public infrastructure investments and human capital development,” Dominguez said.
He said the government expects expenditures to reach 20.7 percent by 2022, with the transition to a cash-based budgeting program enhancing the efficiency of national governments’ disbursements and eradicating underspending. (PR)