PCCI glad economic team staying; For think tank, Recto must go
The country’s largest business organization on Friday welcomed President Marcos’ decision to retain key members of his economic team, calling it a positive step toward policy continuity and investor confidence.
“Retaining all the economic managers is a good move. They are doing a great job in helping make our economy grow,” Philippine Chamber of Commerce and Industry (PCCI) president Enunina Mangio told the Inquirer in a text message.
“They have been instrumental in the continued growth of the economy despite global economic whirlwinds,” she added.
Sign of continuity
The economic managers led by Finance Secretary Ralph Recto and Budget Secretary Amenah Pangandaman include Trade Secretary Ma. Cristina Roque, Socioeconomic Planning Secretary Arsenio Balisacan and Special Assistant to the President for Investment and Economic Affairs Frederick Go.
Mangio said their retention signals commitment to the continuity of reforms and stability in governance, and boosts confidence in the administration.
The decision to retain the administration’s economic team came a day after President Marcos called for the courtesy resignation of all Cabinet secretaries, advisers and agency chiefs to realign the government with public expectations following the May 12 midterm elections.
Other business groups, including the Makati Business Club, the Employers Confederation of the Philippines and the Philippine Exporters Confederation Inc., had already expressed support for Marcos’ economic secretaries.
But a private think tank advocating economic and governance policies to promote Philippine development believes that Mr. Marcos should have kicked Recto out of his Cabinet for “damaging good governance and reforms.”
AER stance vs Recto
“His main task is to safeguard the country’s coffers and to ensure that the government generates tax revenues and manages the debt to meet long-term growth targets and sustainable development goals,” Action for Economic Reforms (AER) said.
The AER is a group of progressive scholars and activists advocating independent and reform-oriented policies.
It said Recto did not safeguard taxpayer money by “orchestrating and allowing regressive measures involving the misuse of public funds and erosion of revenues.”
It cited the transfer of P90 billion in funds from the Philippine Health Insurance Corp. (PhilHealth) to the National Treasury. Recto defended the move, saying that it was allowed under the 2024 national budget.
‘Discredited practice’
The transfer “ruins” universal health care and PhilHealth, and violates the law which earmarks “sin taxes” for the state health insurer, AER said.
“Based on the oral arguments in the Supreme Court (SC), the likely decision is to declare the transfer unconstitutional. The respondents, particularly Secretary Recto, must be made accountable,” AER said.
Recto also supported Republic Act No. 12066, or the Create More Act, which returns the “old but already discredited practice of granting overgenerous and unnecessary fiscal incentives to firms in economic zones.”
The finance chief also is allegedly giving “silent support” for House Bill No. 11360 to lower taxes on tobacco products that could lead to deterioration of revenues and worsening health condition.
