By Kyle Aristophere T. Atienza, Journalist
FORMER Senator Ralph G. Recto, who advocated an increase in the value-added tax (VAT) in the Senate in the early 2000s, has been named Finance Secretary, according to Senate President Juan Miguel F. Zubiri.
Mr. Recto, who was elected as a congressman from Batangas in 2022 and served three six-year terms as a senator, is expected to be sworn in at the presidential palace on Friday, according to reports citing his wife, a former Batangas congresswoman and actress, Vilma Santos. -Recto.
He will replace Benjamin E. Diokno, who was central bank governor during the Duterte administration.
“In the Senate, we have always considered him to be the genius of numbers,” Mr. Zubri said in a statement welcoming Mr. Recto’s appointment.
“It was not just for his mathematical abilities, but more importantly for his ability to immediately see the big picture implications of these numbers.”
Presidential Communications Office Chief Cheloy Velicaria-Garafil confirmed that Mr. Recto will be sworn in as Finance Secretary before President Ferdinand R. Marcos, Jr. on Friday. Also sworn in is former Robinsons Land Corp. Chairman and Chief Executive Officer Frederick D. Go, who was named special assistant to the president for investment and economic affairs.
Mr. Recto and Mr. Diokno did not respond to requests for comment.
In an interview with Bloomberg TV on Monday, Diokno declined to comment on reports that he would be replaced.
“My relationship with the president is badFidential and before making an announcement, I need to clarify this with the president,” he said.
Mr. Recto was elected representative of the 6th Batangas District in 1992 and served three terms. He was first elected to the Senate in 2001, at the age of 37, becoming the youngest of his colleagues in the Upper House. There he chaired the Ways and Means and Commerce and Industry committees.
However, the grandson of the late Filipino statesman Claro M. Recto lost his Senate re-election bid in 2007 after insisting on increasing the VAT by 2 points, to 12 percent.
Then-President Gloria Macapagal-Arroyo appointed him director general of the National Economic and Development Authority in 2008, but left after a year.
He returned to the Senate in 2010 and consecutively obtained his seat in the following elections until 2022.
“More than anyone, he understands how to bridge the gap between mathematical abstractions and the very concrete realities we face as a nation,” Mr. Zubiri said. “So I have no doubt that he will be a good finance secretary who will continue to push the country on the path to greater economic prosperity.”
House Ways and Means Chairman Jose Maria Clemente S. Salceda said Mr. Recto’s long-standing relationship with Congress would be helpful.
“His experience and network will be crucial to implementing meaningful reforms aimed at addressing the rising cost of living, creating jobs and expanding our Fispace on a large scale,” he said in a Facebook Messenger chat.
Mr. Salceda noted that Mr. Recto was one of the authors of the 1997 Comprehensive Tax Reform Program during his tenure in the House.
“I am optimistic that major tax reforms pending in the Senate will also advance more quickly with his nomination, because of his relationships within this chamber, as well as his ability to negotiate workable compromises,” the lawmaker said.
Mr. Recto’s appointment signals a “crucial shift toward policies that are not only economically sound, but also socially responsible and politically astute,” Terry L. Ridon, a former lawmaker and head of the think tank InfraWatch PH, said in a statement. discussion on Facebook Messenger.
He said Recto’s extensive experience in the executive and legislative branches of government allows him to “bring a holistic perspective to economic policy.”
“Leading the government’s economic team during this time of economic turmoil and global malaise requires a leader with a proven track record of pursuing economic decisions that do not place the public at greater risk,” he said. added.
Gary Ador Dionisio, dean of the De La Salle School of Diplomacy and Governance – College of Saint Benilde, said Mr. Recto’s appointment shows that there is dissatisfaction with the previous leadership of the Finances and that Mr. Marcos wants to consolidate his own team.
“This will help President Marcos pursue his new economic agenda under Secretary Recto,” he said via Messenger chat. “Since Secretary Recto is also a long-time politician, his political capital will be useful to President Marcos in consolidating his political and economic network.”
Philip Arnold P. Tuaño, dean of the Ateneo School of Government, said Mr. Recto would bring a policy perspective to the Finance Department’s plans, “which is critical to advancing some of the proposed tax reforms that have yet to be implemented.” be done.”
Mr. Tuaño said Mr. Recto would not be spared questions about whether he might stay just one year as finance secretary to run for senator in 2025, “in the same way as his appointment as director general of NEDA in 2008 and his resignation to run for senator in 2025.” 2009.”
Assessing the performance of Mr Recto’s predecessor, Mr Ridon said Mr Diokno had issued “cautionary statements” against the suspension of value-added taxes and excises on petroleum products, “contrasting sharply with the urgent aid that the population needs.
“His emphasis on potential damage to the economy and government Finances neglect the immediate benefitsFi“This is what such a suspension could achieve, especially in light of the recent surge in fuel prices,” the political analyst said.
He also recalled that Mr. Diokno opposed the implementation of a rice price cap in September last year, with the outgoing secretary saying it was done without input from economic advisors. Mr. Diokno’s colleagues at the University of the Philippines’ economics faculty also opposed the price cap order.
“The biggest red flag that has sparked public anger is Diokno’s repeated assertion that the central bank has done enough to control the country.flation, despite the incessant price increases and their impact on the average Filipino,” Mr. Ridon said.
