‘Further reforms to enable Philippines to thrive’

MANILA, Philippines — More reforms in digitalization, revenue collection and healthcare system need to be carried out to enable the country to flourish in a post-pandemic era, Finance Secretary Carlos Dominguez III said.

In his keynote address at the Southeast Asia Development Symposium hosted by the Asian Development Bank (ADB), Dominguez said such reforms include those aimed at improving the country’s information and communications (ICT) infrastructure to expand the use of digital tools, enhance revenue collection performance, and financial inclusion.

These also include those related to strengthening the healthcare system and keeping a strong fiscal position to withstand future crises.

“Moving forward, we seek to rapidly improve our information and communications technology infrastructure as well as human resources to be at the cutting edges in the application of new technologies to achieve the best revenue performance,” said Dominguez, the governor of the Philippines in the ADB.

“In the post-pandemic era, we need to continue pursuing sustainable policies targeted towards bolstering our healthcare system and financial position to withstand future adversities. At the same time, we should craft more reforms towards greater financial inclusion for our people.”

Dominguez said such reforms would build on previous efforts on tax reform and administration, fiscal prudence, and digitalization drive in pension revenue-collection agencies.

These include the efforts to digitalize majority of the transactions in the state-run pension funds, launch of mobile application for bond offerings, and increased collection of government revenues through digital channels.

“We are very optimistic about the near future. That optimism is based on our willingness to undertake the reforms necessary to rebuild a strong and inclusive economy that thrives into the 21st century,” said Dominguez.

During Wednesday’s opening plenary, ADB president Masatsugu Asakawa said efficient revenue collection would be crucial to recovery amid the crisis as countries recover from pandemic-induced recession.

He recognized that governments in Southeast Asia have been spending heavily amid diminished revenue collections.

This, he noted, have been worsened by problems in financial management issues.

“This unparalleled expenditure has been accompanied by a substantial reduction in the tax base. This is due in part to subdued economic growth. But there was also on the line public financial management issues that have been exacerbated by the pandemic,” said Asakawa.