According to the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), growth of the Philippine economy will be slower this year at 6.7 percent from 7.2 percent posted last year. However, the Philippines posted the strongest growth compared to its Southeast Asian counterparts.
UNESCAP advised the country to beef up its revenue collection to achieve the targets. Efforts such as new policies that can improve domestic resource mobilization should be implemented. This would include new improvements in the way taxes are collected and distributed so that tax evasion and tax fraud can be avoided.
Last year, the Bureau of Internal Revenue (BIR) was able to collect P1.217 trillion in tax revenues, which is 15 percent higher than 2012ís P158.72 billion. However, figures in 2013 were lower than the initial target.
Another recommendation stated by the UN body is more fiscal space for social services like education, health, and social protection. These, in turn, are expected to help further boost the local economy.
Meanwhile, the deficit in the trade industry was buoyed by strong dollar exchange from remittances, business process outsourcing (BPO) revenues, and tourism receipts. Account surplus surpassed the gross domestic product (GDP) by 3.5 percent.
The Philippines is also ranked as one of the countries in Southeast Asia to have increased the share of national income to the poorest 20 percent of its population.