Despite the decline in revenues owing to the health crisis in 2020, the government’s revenue effort remains strong, attaining the second-highest level in history.
This was learned from the Department of Finance (DoF) as it noted that the robust revenue effort allowed the Philippines to come up among the six strongest emerging economies to outlast the pandemic.
“The fiscal reforms adopted by the Duterte administration, including tax reforms and the utilization of idle savings in the public sector, boosted the revenue effort to its second-highest level in history,” the DoF said.
Data from both the Bureau of Treasury and the Philippine Statistics Authority showed the Duterte administration’s revenue effort in 2020 at 15.89 percent, a slight decline from the posted 16.08 percent in 2019, the highest it has been amid the economic boom.
According to the DoF, the country’s should continue to adopt fiscal reforms, the pending tax reforms in particular as these could help sustain fiscal gains.
“Due to fiscal reforms, the country was able to fund the unprecedented fiscal requirements imposed by the pandemic and at the same time, protect its strong macroeconomic fundamentals,” it explained.
With the latest revenue effort, the government was able to raise P2.85 trillion in 2020, a 9 percent drop from the posted P3.13 trillion in 2019.
Tax revenues declined by 11.4 percent to just P2.50 trillion from the recorded P2.82 trillion in the same comparable period as collections from both the Bureaus of Internal Revenue and of Customs contracted by 10.3 and 14.7 percent respectively.
Non-tax revenues meanwhile, grew by 13.5 percent owing primarily to the higher dividend remittances and repayment of interest and advances by various government-owned and -controlled corporations.
In terms of expenditure effort, the government managed to record its highest in history with 23.52 percent in 2020, notably higher than the registered 19.46 percent in 2019.
Credit belongs to : www.tribune.net.ph