MANILA, Nov. 17 (Xinhua) -- Philippine Finance Secretary Ralph Recto on Monday asserted that the Philippine economy remains "fundamentally strong," with solid foundations and sustained investment opportunities, even as the Marcos administration undertakes internal reforms to address governance issues.
"We are not blind to the challenges, nor are we shaken by them," Recto said in a statement, addressing concerns over the allegations buffeting the Marcos administration.
"Trust is the lifeblood of any economy," he said. "It keeps investments coming in, businesses expanding, and jobs growing. And this trust is being protected, strengthened, and rebuilt every single day by the Marcos administration."
He added that the government is implementing a comprehensive catch-up plan to align disbursements with national priorities and support faster economic growth.
As Congress continues budget deliberations, Recto urged lawmakers to pass a 2026 national budget that reflects the administration's priorities and reform agenda.
"We must prioritize spending with the highest multiplier effects, enforce fiscal discipline, and impose targeted austerity on travel, MOOE, and non-essential expenses," he said, adding that the national budget remains the "most powerful lever of our growth story."
Recto assured the public that essential services will continue uninterrupted, high-impact infrastructure projects, including school buildings, will proceed, and official development assistance-funded programs will accelerate.
Reconstruction of infrastructure damaged by recent calamities will also be carried out without delay and with clear, publicly available plans.
The finance chief also highlighted the administration's push for governance reforms, including an anti-political dynasty law, strengthening of the party-list system, campaign finance transparency, institutionalizing freedom of information, and removing all unprogrammed appropriations except those necessary for emergencies.
Recto said the government is intensifying efforts to curb tax evasion and smuggling, with the Bureau of Internal Revenue and Bureau of Customs pursuing "major cases with time-bound investigations and swift prosecution -- no delays, no exemptions, no sacred cows."
He maintained that the country's fiscal consolidation path remains firmly on track.
Inflation in October stood at 1.7 percent, giving the Bangko Sentral ng Pilipinas more room to cut interest rates and stimulate domestic activity.
Employment data also point to resilience, with wage and salary workers accounting for 64.1 percent, or 31.8 million, of the 49.6 million employed Filipinos, Recto said.
He noted that the economy is expanding faster than the real cost of borrowing.
By the end of 2025, real interest payments are projected at 3.3 percent, compared with expected GDP growth of 4.7 to 4.8 percent.
"That means we have more than enough capacity to pay what we owe, and our debt remains manageable, stable, and sustainable," he said. ■
