P118.5B

Our economy has lost P42.3 billion to P118.5 billion," Recto said at the Development Budget Coordination Committee (DBCC) briefing at the Senate.

- With Neil Jayson Servallos, Marc Jayson Cayabyab

The finance chief said the number of potential jobs could have ranged from 95,000 to 266,000, essentially enough to boost economic activity.

He said it was only now that they had been apprised of the extent of the flood control problem.

"Maybe if that money was spent better, we could have reached six percent. That's the point," he said, citing the impact on the economy of flood control project anomalies.

The Philippine economy expanded 5.4 percent in the first quarter of this year, and 5.5 percent in the second quarter.

In 2024, full-year GDP growth settled at 5.7 percent, higher than the 5.5 percent recorded in 2023.

For this year, as targeted by the Cabinet-level DBCC, growth is expected at 5.5 percent to 6.5 percent from the original target of six to eight percent. But Recto is optimistic that the growth target for the third quarter would still be achievable.

Also at the briefing, Recto said revenues lost this year, especially from smuggling of oil and general merchandise, stood at P150 billion for the Bureau of Customs.

"The last time we met with the new commissioner of the BOC, they presented us the catch-up plan and we presented to them our catch-up plan that I think they should do," he said.

At a press briefing last July, Recto said Custom's revenue target shortfall would be around P100 billion, partly due to rice tariffication and tax incentives granted to hybrid and electric vehicles.