FINANCE Secretary Carlos G. Dominguez III said the government revenue agencies need to turn in strong performances this year to support infrastructure and healthcare spending, which are critical to the economic recovery.
鈥淓ssential to our fiscal consolidation program is the improvement of our revenue collections to meet our expenditure requirements. This year will be critical,鈥 he said at a Bureau of Internal Revenue (BIR) event on Thursday.
鈥淲e need to begin outgrowing our debt by restoring our high growth,鈥 he added.
He said the spending priorities are infrastructure modernization, public health, and social services.
鈥淲e have to continue procuring vaccines for our people. We need to rebuild the communities damaged by severe weather events caused by climate change.鈥 Mr. Dominguez said.
The BIR collected P2.08 trillion in 2021, up 6.51% year on year, according to Treasury data.
Overall tax collections rose 9.4% to P2.74 trillion last year.
Meanwhile, outstanding debt hit P11.73 trillion at the end 2021, up nearly 20%.
The Department of Finance (DoF) has been preparing a fiscal consolidation program to manage the national debt.
鈥淲e have already formulated a program to limit the budget deficit and improve the debt-to-GDP ratio,鈥 Mr. Dominguez said. 鈥淭his is part of our transition plan for the next administration.鈥
Rene E. Ofreneo, president of the Freedom from Debt Coalition, has said that the government should manage its spending by tweaking infrastructure investment.
The government needs to reduce big-ticket projects that benefit only a few in favor of community-based programs that help protect citizens against the pandemic and climate change, he said.
Separately, BIR Commissioner Caesar R. Dulay at the same event proposed a review of legislation to increase salaries at the bureau.
鈥淚 would like to see, maybe, a review of the salary standardization act so that (BIR employees鈥) compensation (is) commensurate to their responsibilities and efforts,鈥 he said.
Salaries at the bureau, he said, 鈥減ale in comparison鈥 to other government agencies. 鈥 Jenina P. Iba帽ez
