THE Department of Finance (DoF) has urged the incoming administration to continue and reinforce the hard-won reforms of the outgoing administration in order to maintain economic development.
“The country has drawn the arrows of fiscal and monetary policies to combat the deleterious economic effects of the pandemic and has reinforced the arc with structural reforms…Despite current headwinds (e.g. food security threats and energy), the incoming administration should continue and build on hard-won reforms,” he said in an economic bulletin published on Saturday.
The DoF further stated that the main packages of the overall fiscal reform program that have been passed are structural reforms that have broadened and strengthened the use of fiscal policy which has been expansionary due to the infrastructure program.
Rice import quotas have also been turned into tariffs, and the National Food Authority’s rice price stabilization function and regulatory restrictions have been removed, he added.
The Department of Finance also said the amendment to the Bangko Sentral ng Pilipinas charter gives monetary and financial authorities more power to achieve price and financial stability, as well as to oversee an efficient and secure payment system in a economy increasingly dominated by digital technology.
The Retail Trade Liberalization Law, Foreign Investment Law and Civil Service Law were all recently amended, he said, stressing that these three structural reforms are expected to boost the economy by opening up doors to more foreign capital and know-how. how, offering competition to the entrenched local boys who have dominated the national economy for so long.
“In a nutshell, the past few years have seen much of the earthwork done in the country’s quest for sustainable and inclusive development,” the DoF concluded.
The Development Budget Coordinating Committee has opted to reduce the government’s growth target for this year to 7-8%, down from a previous target of 7-9%. The impressive rebound in the first quarter of 2022 – to 8.3% – brought the country closer to its target of achieving at least 7% growth this year, economic officials said.