Recto, Go sworn in; Diokno goes to MB

MANILA, Philippines — Newly appointed Finance Secretary Ralph Recto took his oath yesterday, amid an avalanche of praise from various quarters and peers, with President Marcos voicing confidence in his new official’s capability to ensure fiscal sustainability while keeping inflation down.

Marcos also swore in Frederick Go, former Robinsons Land president and chief executive officer, as special assistant to the president for investment and economic affairs.

Former finance chief Benjamin Diokno, meanwhile, took his oath as member of the Monetary Board before Bangko Sentral ng Pilipinas Governor Eli Remolona Jr.

The two new officials were accompanied during the oath taking by their families, including Recto’s wife, veteran actress and former lawmaker Vilma Santos.

At a press conference at Malacañang, Marcos said the appointment Recto and business leader Go would reinvigorate the economic team, which has to deal with the daunting task of slowing inflation, managing public debt and bringing in investments as the country moves toward recovery.

“My fellow Filipinos, these two gentlemen embody the values of competence, integrity and a deep sense of responsibility that we look for in our government leaders,” the President said.

Marcos believes Recto would be a major player in maintaining the country’s economic growth, meet and even surpass its medium-term fiscal targets and achieve developmental targets.

“He will promote not just ease in paying taxes, but also in efficiently and effectively spending those collections, because the citizen’s reward for tax compliance should be better and more responsive public services,” the President said.

“He will continue to help devise strategies that will tame inflation through a basket of responses, ranging from plugging supply gaps to injecting non-monetary measures so that prices will be stable,” he added.

As a former senator and congressman, Marcos is confident Recto would leverage his influence in both houses of Congress to pass bills that accelerate growth, draw in investments and create better jobs while raising funds that would be invested back for human development.

He said he has also tasked his new finance chief to be at the forefront of the administration’s anti-smuggling drive, as well as in its pursuit of tax cheats, starting with the habitual ones who he said have raised tax evasion not just into an art but into a business.

“And when the seductive call of populism beckons, I am sure that Secretary Recto will counsel us on the merits of fiscal discipline, to remind us of the price tag of dreams and to stick to the kind of stewardship that bequeaths no huge generational debt for our children,” Marcos said.

As his former colleague in the House and the Senate, Marcos cited Recto for “being fastidious” with the examination of appropriations of the national budget, of revenue and economic numbers.

“We have always suspected that he sleeps with the General Appropriations Act under his pillow and treats the Tax Code as leisurely reading, and his copy of the Budget of Expenditures and Sources of Financing is probably the most dog-eared book in his house,” Marcos said.

Marcos also hailed his former finance secretary, Benjamin Diokno who, he said, has chosen to return to his “natural habitat,” the Bangko Sentral ng Pilipinas (BSP).

“We are not changing horses in midstream. We are continuing the policies that we had laid out from the beginning,” Marcos said when asked about the revamp in the DOF.

Tax collection

In his remarks, Recto vowed to focus on boosting tax collection, which is projected at P4.273 trillion.

“Number one is to collect for next year, I think P4.3 trillion in taxes, P3 trillion with the BIR (Bureau of Internal Revenue), P1 trillion with the BOC (Bureau of Customs) and I think the Treasury has P300 million, it’s all about fiscal sustainability,” Recto said.

“So every night, when I wake up in the morning, the (tax) collected should be more or less P20 billion to fund all the needs of our people, the requirements of the government and to make sure that the money is spent wisely,” he said.

When asked if he would push for more taxes, he said he would work on passing pending revenue measures.

Recto said there will be no major policy changes in the DOF as he would be guided by the Philippine Development Plan and the 8-point Economic Agenda.

Diokno, for his part, said the new finance chief would inherit a department and an economy that are on solid footing.

“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.

The rest of the economic team also threw their support behind their latest member.

Budget Secretary Amenah Pangandaman said she is confident that Recto would pick up from where Diokno left off, as she referred to the latter as the economic team’s guiding light.

“Sec. Diokno established a very good foundation for our economic transformation so I am confident we can continue this under Sec. Recto, who is a legislator with executive branch experience and can merge these experiences to pursue our desired reforms,” Pangandaman said.

The Bankers Association of the Philippines (BAP) also welcomed Recto’s appointment, noting his experience is necessary to promote Philippine economic growth through the implementation of effective fiscal policy.

“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,” BAP president Jose Teodoro Limcaoco said.

The National Economic and Development Authority (NEDA) also welcomed the appointment of Recto as finance secretary.

“As we acknowledge the invaluable contributions of outgoing Secretary Benjamin Diokno to the growth of the economy under the Marcos administration, we welcome the appointment of Deputy Speaker Ralph Recto as his successor,” NEDA Secretary Arsenio Balisacan said in a statement.

“NEDA looks forward to working with Secretary Recto and the rest of the Cabinet to realize President Marcos’ goal of securing a better future for Filipinos through sustained economic growth and inclusion,” Balisacan said.

The Philippine Chamber of Commerce and Industry (PCCI) called Recto a “valuable addition” to the Marcos administration’s economic team.

“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,” PCCI president Eunina Mangio said in a statement.

“We look forward to continue working and collaborating with government to drive our economy forward,” Mangio added.

Trade and Industry Secretary Alfredo Pascual also expressed full support for Recto.

“We at the DTI are fully committed to fostering inclusive and sustainable economic growth in our country. We will continue to work closely with the economic team in realizing the President’s economic priorities,” Pascual said in a statement.

The Makati Business Club also congratulated Recto on his appointment. “Mr. Recto’s previous stints in NEDA, the House of Representatives and the Senate – including his authorship of the Expanded VAT law of 2006 (RA 9337) – will serve the administration and country well as we address growing financial and economic challenges,” the MBC said.

Perfect choice

For senators, Recto is the perfect choice for leader of the economic team. “Recto is both competent and hardworking. He is adept at economics and finance. We have seen him work,” Senate President Pro-Tempore Loren Legarda said.

“He also has good relations with people. The DOF will be in good hands with Ralph at the helm. He will be able to lead and traverse our economic sustainability during challenging times. I am happy for him and for our country,” she added.

Senate Minority Leader Aquilino Pimentel III called Recto’s appointment “well-deserved,” as he wished him luck “on his assumption to a difficult job at a very turbulent moment.”

Sen. Sonny Angara, Senate committee on finance chairman, said he “can attest to the new secretary’s political acumen and sterling intellectual abilities.”

“He is a good friend and, as a legislator for several decades both in the House and the Senate and as former NEDA chief, Sec. Recto is an able and capable addition to President Marcos’ Cabinet in ensuring that we continue to sustain the economic gains we have thus far achieved,” Sen. Francis Escudero said.

“Deputy Speaker Ralph as finance chief is a perfect choice because of his extensive experience as an economist and his contribution to the country’s financial restructuring as NEDA chief and legislator,” Sen. Nancy Binay said.

Like her colleagues, Sen. Grace Poe lauded the choice of Recto as one of the country’s top economic managers.

“We don’t only have an assertive and bold Batangueño at the helm of the DOF, but a seasoned lawmaker and economist who can steer our financial state to a progressive path,” Poe said. “I am certain Sec. Recto will use his competence, compassion, hard work and brilliance to better the lives of the people.”

Former Senate president Franklin Drilon also praised Recto’s appointment. “Having served alongside him in the Senate for an impressive 12 years – three years as Senate President Pro-Tempore when I was Senate President – we have witnessed firsthand his profound understanding of the needs of the Filipino people,” Drilon said.

Sen. Jinggoy Estrada said Recto can expect a “smooth-sailing” confirmation process at the Commission on Appointments.

Recto’s party, the Nacionalista Party, called his appointment “a testament to the administration’s determination to strongly push the country’s economic recovery and success.”

Meanwhile, House Secretary General Reginald Velasco said the chamber has yet to determine how to find a replacement for Recto. — Cecille Suerte Felipe, Catherine Talavera, Louella Desiderio, Louise Maureen Simeon