REPRESENTATIVE Joey Salceda, chairman of the House Committee on Ways and Means, has lauded the recent upgrade of the Philippines’ credit outlook from “stable” to “positive” by S&P Global Ratings, attributing the positive development to key policy reforms and President Ferdinand “Bongbong” Marcos Jr.’s leadership.
In a statement, Salceda directly linked the upgrade to “improved assessment of institutional and policy settings in the Philippines,” citing the passage of the Digital Economy Taxation Act and the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act as key drivers.
“This development is directly attributable to President Marcos’s responsible approach to fiscal policy, and Congress’s efforts to enact fiscal reform,” Salceda stated. He also credited Marcos’s “harmonious relationship with both labor and business” and his reaffirmation of the Philippines’ role in international markets and multilateral organizations.
Salceda expressed confidence that further upgrades to an “A-level” rating are within reach, contingent on the passage of fiscal reforms in the mining sector and the Capital Markets Efficiency Promotion Act, both of which are currently being considered by the Senate. “I think we might agree on versions for both before Christmas,” he said.
The Congressman highlighted the positive macroeconomic conditions entering 2025, including low inflation, stable employment levels, and gradually declining interest rates, further bolstering the outlook for future upgrades.
Salceda emphasized the tangible benefits of the credit outlook upgrade, citing a potential reduction in average government borrowing interest rates by as much as 0.25 basis points. “Every rating upgrade would save the Filipino taxpayer as much as P29 billion in interest payment costs in the budget,” he explained. “That is money for as many as 1,160 classrooms, about 30 new provincial hospitals, and as much as 1,414 kilometers of concrete roads. These are very real impacts on the Filipino family.”
Salceda assured the public that the House Committee on Ways and Means, responsible for originating tax reforms, will continue to work diligently until the end of the term. “There will be no lame duck period,” he stated, emphasizing the committee’s commitment to enacting further fiscal reforms.
The credit outlook upgrade signifies a positive step for the Philippine economy, reflecting the government’s commitment to fiscal responsibility and economic growth. Salceda’s statement underscores the importance of continued collaboration between the legislative and executive branches in driving economic progress and improving the lives of Filipinos.
