BY ONLINE BALITA NEWS
Finance Secretary Ralph G. Recto has told economic journalists that the government will exhaust its power to ensure that the next generations of Filipinos will not inherit the same challenges of today, and has called on them to continue fair and insightful reporting of the Philippine economic story to help widen public economic literacy.
“Allow me to thank all of you for your dedication to truth, and for providing proper context that enables our people to fully appreciate the long-term gains of our actions,” Recto said in his keynote speech during the Economic Journalists Association of the Philippines (EJAP)- San Miguel Corporation (SMC) Economic Forum on July 8, 2024.
With the theme: “Future Proofing the Philippine Economy: Strategies and Policies”, Secretary Recto thanked the press for helping the government explain the critical aspects of its decision-making process that shape the future of the country.
“At the core of every policy and every choice is a steadfast commitment and a delicate balancing act. We will do everything within our power to ensure that the next generation of Filipinos does not inherit today’s challenges,” he stressed.
The Finance chief underscored that to ensure food security, which is a top priority of President Ferdinand R. Marcos, Jr., the government is sparing no effort to address the current rice-driven inflation due to its price increases in the global market.
In June 2024, rice accounted for 53.5% of the overall inflation for average consumers, while it had a bigger share of 79.6% for those in the bottom 30% of households.
“Our mandate is clear: we must act swiftly to alleviate this burden that disproportionately affects the vulnerable population,” he said.
By reducing the tariff on imported rice to 15% from 35%, retail rice prices could go down by an average of 10% or PHP 5.0 per kilo for the rest of the year.
This move can lower the price of rice to below P50 as early as August, reducing the overall inflation rate for the year to an average of 18 percentage points or 3.3% from 3.5%.
“And while this could entail revenue losses for the government amounting to PHP 9.2 billion for the rest of 2024, in the bigger picture, this improves the welfare of households, especially the poor,” Recto noted.
DOF chief assured that such is only a short-term solution that works in tandem with the government’s long-term goal of boosting the country’s agricultural production through the planned increase of the Rice Competitiveness Enhancement Fund (RCEF) and higher investments in the agriculture sector.
In 2024, the agriculture sector’s budget grew by 27.7% to PHP 221.7 billion. This will help install more irrigation systems, construct farm-to-market roads, procure agri machinery and equipment, and prioritize research and development.
“All these will set the stage for a modernized agriculture sector, transforming it into a principal engine that drives national growth,” Recto said.
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