Election financial houndeni act

The Philippines touts a 5.6 percent gross domestic product (GDP) growth in 2024, the highest in the region. With the highest GDP growth rate and one of the two biggest national budgets in ASEAN (2021-2025), it has little to show—except the lowest GDP per capita in the region.

- ZOILO P. DEJARESCO III

Besides, our 1.9 percent inflation rate and 1 percent population growth rate somewhat dampened the effective GDP growth rate.

In the meantime, the OCTA Research Group nationwide survey (April 2-5) showed President Ferdinand Marcos' trust rating dropped from 65 percent in November 202, to 60 percent in April 2025, and his satisfaction rating from 64 percent in November 2024 to 59 percent in April 2025.

Meanwhile, with the mid-term elections just days away, the administration's image-building must be revved up. It seems to be in near panic mode.

While everyone seemed distracted, Secretary Ralph Recto's Finance Department attempted to insert new tax measures—increasing the tax imposed on capital gains, donors, and estate taxes from 6 percent to 10 percent, raising a collective howl from small-medium businesses and the middle class.

Secretary Recto blinked, tail between his legs, and aborted the new burdensome measures, citing that the government was fiscally in shape due to higher-than-expected earnings in First Quarter (January-March) tax revenues. Some suspect a bit of mental dishonesty there, as we are already entering May, and these first-quarter numbers were available much earlier.

Besides, the government already forecasted in the national budget that the total revenues for 2025 will be 1.538 trillion, up by P53 billion from 2024's P1.484 trillion. Was the Finance Department still surprised?