Dr Benjamin Diokno, a seasoned Filipino economist, currently serves as a full-time member of the Monetary Board of Bangko Sentral ng Pilipinas for a six-year term effective 12 January 2024, having served as Secretary of the Department of Finance from July 2022 to January 2024. Previously, he also served as Secretary of Budget and Management and Governor of Bangko Sentral Ng Pilipinas (BSP). In an exclusive interview with International Business Review, Dr Diokno discusses his plans for the Philippine economy, focusing on fiscal sustainability and implementing the Philippine Development Plan (PDP) 2023-2028.
Navigating The Pandemic-struck Economy
Known for his fiscal conservatism and anti-corruption stance, Dr Diokno prioritised debt management, growth stimulation, and financial stability during the COVID pandemic. As BSP Governor, he enacted regulatory relief measures and maintained investment-grade ratings of BBB+ despite global downgrades. His actions included a 200 basis point reduction in the policy rate and regulatory relief measures, aiding the economy’s resilience. Dr Diokno is proud of transitioning towards a cash-lite economy, stating, “We implemented various regulatory relief measures to extend financial assistance, boost bank lending, and ensured continued access to financial services.”
Aspirations for the Department of Finance
As Secretary of Finance, Dr Diokno aimed to implement the Medium-Term Fiscal Framework (MTFF), supporting infrastructure spending at 5-6 percent of GDP annually for six years. This aligns with the PDP 2023-2028, focusing on sound fiscal management, tax regime improvements, economic recovery, and financing social and infrastructure development. The PDP targets revenue as a percentage of GDP to reach 15.3 percent in 2023 and 17.6 percent by 2028, with tax collection rising similarly.
Addressing High-priority Issues
To address job creation and competitiveness, the DOF continues the implementation of the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) and improving tax administration. Addressing the Mandanas-Garcia Case, Dr Diokno recognises the need to strengthen local government finance. He envisions a robust economy, aligning with AmBisyon Natin 2040, a vision for inclusive growth and high-trust society. Collaboration with Congress for priority revenue measures and enhanced tax administration is crucial.
“Our aims include achieving sound fiscal management, improving the tax regime, sustaining economuc recovery, and financing social and infrastructure development.”
