Diokno proud to leave DOF in 'better state of affairs'

MANILA, Philippines — Former finance chief Benjamin Diokno on Friday said that he is pleased to be turning over his seat to the new finance secretary, Ralph Recto, at a "better state of affairs", the Department of Finance (DOF) said in a statement on Friday.

The DOF's statement was released a day after Malacañang confirmed Recto’s appointment as the next finance chief. He took his oath of office on Friday.

In the same statement, Diokno said that he would leave the department in good shape for his successor. 

“I am proud knowing that I will be leaving my post at a time when the Philippine economy, in general, and the DOF, in particular, are in a better state of affairs than when I inherited them,” Diokno said was quoted as saying.

Recto, who is also the current House Deputy Speaker, authored the Expanded Value Added Tax Law in 2001, which increased the value added tax from 10% to 12%.

He was also appointed to head the National Economic and Development Authority in 2008, during the administration of former President Gloria Arroyo.

Before Diokno’s appointment to the Finance department in June 2022, he served as the governor of the Bangko Sentral ng Pilipinas (BSP) under the administration of former President Rodrigo Duterte.

Diokno is also a board member of the Maharlika Investment Corporation in his ex-officio capacity as secretary of finance. 

In a statement of “support” for Recto, Department of Budget and Management (DBM) Secretary Amenah Pangandaman said that Diokno will return as a monetary board member of the BSP.

“He has always been the guiding light of the Philippine economic team,” Pangandaman said, referring to Diokno.

"Secretary Diokno established a very good foundation for our economic transformation so I am confident we can continue this under Secretary Recto, who is a legislator with Executive branch experience and can merge these experiences to pursue our desired reforms," she added.

Ideal fit for the job

Business groups in the Philippines also lauded Recto’s appointment as the new finance secretary.

They said that Recto will be a strong player for President Ferdinand Marcos Jr’s economic team as he will play a “critical role” in the “reformation of fiscal and economic policies.”

“While the Philippine economy continues to grow due to its strong fundamentals, it is currently facing local and global economic headwinds such as inflation. The country needs an experienced economist who can navigate the ongoing challenges of this operating environment, and Secretary Recto is an ideal fit for this job," Jose Teodoro Limcaoco, Bankers Association of the Philippines (BAP), said in a statement.

The Philippine Chamber of Commerce and Industry (PCCI), on the other hand, expressed hopes that Recto would continue to push reforms that are “supportive of the growth of businesses.”

"Senator Recto is perfectly suited for the job. He has the experience, expertise and political backing that are critical if he is to oversee the strengthening of the country's economic and fiscal positions. He has led the National Economic Development Authority and authored and sponsored landmark measures, that have helped the country weather economic crises even as some were unpopular," Enunina Mangio, PCCI president said in a statement.

"We look forward to continue working and collaborating with government to drive our economy forward," she added

Both business groups also thanked Diokno for his service in the DOF.