The Department of Finance reiterated its support on the filing of the Fiscal Incentives Rationalization Bill as part of the government’s goal to institutionalize good governance through legislation.
On September 5, Rep. Luigi Quisumbing of the Sixth District of Cebu filed before the House of Representatives House Bill 2765, or “An Act Rationalizing the Grant and Administration of Fiscal Incentives for the Promotion of Investments and Growth, and for Other Purposes,” also known as the Fiscal Incentives Rationalization Bill.
In a statement on Monday, Finance Secretary Cesar Purisima said that the objective of the bill is to instill further transparency in the government, by requiring units to be accountable for the incentives they grant.
He explained that the bill means a department, as part of the budgeting process, must clearly outline what incentives it proposes to grant, at what cost, and what measurable outcomes each incentive will bring.
“When it is time to debate whether or not to continue incentives, these will be judged based on whether or not they have produced the desired outcomes. This will make it easier for us to discontinue incentives that are either misaligned with our goals or for industries that are already mature,” he stated.
Purisima also said that the bill will help the government identify which sectors use incentives most effectively in bringing benefit to the Filipino people.
He added that the bill will also help trim waste from government spending, and free up fiscal space to invest in people and infrastructure.
“I hope that this bill gets all the support it deserves not just from Congress, but from the public as well,” he said.