High-quality job creation––cornerstone of economic revitalization

Finance Secretary Benjamin E. Diokno shared the government’s development agenda with business leaders during the Chinese-Filipino Business Club Inc. (CFBCI) Forum with the theme, “Strengthening Economic Resilience and Sustainability: Charting the Path Towards Inclusive Growth,” on April 19, 2023 at the Century Park Hotel, Manila.

“High-quality, digitally-driven, 21st century job creation will be the cornerstone of our economic revitalization. For this, we will invest heavily in high-impact sectors: digitalization, human capital development, and infrastructure,” he said in his keynote message to the Chinese-Filipino business community.

According to Secretary Diokno, this strategy requires heavy financing, which calls for a robust fiscal policy framework.

The economic team introduced the Philippines’ first-ever Medium-Term Fiscal Framework (MTFF) to be used as a roadmap to attain macro-fiscal stability and to support the Marcos, Jr. administration’s plans for economic recovery.

The MTFF will bring down the deficit-to-GDP ratio to 3.0 percent by 2028, debt-to-GDP ratio to less than 60 percent by 2025, and sustain infrastructure spending at 5 to 6 percent of GDP annually.

“The Marcos Jr. administration recognizes that true economic and social transformation is only possible through the cooperation of every sector of the economy,” Secretary Diokno said.

With this, the government has made public-private partnerships (PPPs) more efficient by revising the Implementing Rules and Regulations (IRR) of the Build-Operate-Transfer (BOT) Law. This clarified provisions on processing infrastructure or development projects to arrive at the real cost of the project to the government, consumers, and taxpayers.

Secretary Diokno also noted that the revised IRR includes inputs from the private sector and civil society to ensure that the benefits and risks of PPP projects are equitably distributed among parties, while safeguarding national interest.

On March 9, the National Economic and Development Authority (NEDA) Board approved 194 high-impact Infrastructure Flagship Projects (IFPs), with a combined value of PHP9 trillion.

“Among the projects in the IFP list are three priority bridges crossing the Pasig-Marikina River and Manggahan Floodway. This project would not have been possible without the support of the Government of the People’s Republic of China,” Secretary Diokno said.

Last January, the DOF and China Eximbank signed four loan agreements amounting to US$202 million or RMB1.4 billion to finance the priority bridges, namely the North and South Harbor Bridge, Palanca-Villegas Bridge, and East-West Bank Bridge 2.

This will provide additional fixed links and alternative routes crossing the river and the floodway and will ease traffic congestion in Metro Manila.

“Aside from physical connectivity, we are also working to upgrade our digital infrastructure. The pandemic has made it clear that traditional ways of doing business will not survive the industry of tomorrow,” Secretary Diokno said.

The House of Representatives recently approved the E-Governance Bill on third and final reading. The measure seeks to institutionalize the use of information and communication technologies and emerging technologies to improve the efficiency of public services.

The bill is expected to enhance the ease of doing business in the country and improve public trust in the government.

“As business leaders, I invite you to work with the Philippine government in building a dynamic and thriving economy that our people deserve,” Secretary Diokno said in closing.