HRep-Ateneo Project 2nd Roundtable Discussion: Food Prices and Fiscal Management

The HRep-Ateneo Project conducted its second round table discussion on 14 March 2023 at the Batasan Pambansa Complex, covering pressing issues on the food sector and fiscal management. Hon Stella Luz Quimbo of Marikina’s 2^nd Congressional District opened and set the tone of the discussion. 

Lowering Food Prices in the Philippines

Dr Marites Tiongco of the De La Salle University and Congressional Research Fellow of the HRep-Ateneo Project discussed the theme—"Lowering Food Prices in the Philippines?” Particularly, Dr Tiongco expounded on the impact of the recent hike on food prices especially among poorer households. Strategies to lower high food prices or mitigate its effects were posed, including strengthening buffer stocking of rice and other basic food items for emergencies and disasters as well as streamlining and improving the implementation of trade regulatory measures.

Adding their insights to the discussion were the panel of experts and practitioners from the food sector composed of Hon Wilfrido Mark Enverga of the House Committee on Agriculture and Food; Dr Gerald Glenn Panganiban of the Department of Agriculture–Bureau of Plant Industry; and Dr Roehlano “Rhoel” Briones–Senior Research Fellow at Philippine Institute for Development Studies (PIDS). 

Rep Quimbo summarized the discussion by emphasizing the need for modernization in the agriculture sector, posing a question on what to prioritize, where to start, and how to address the issues currently making Filipino lives difficult. 

Other representatives who participated in the session include Rep Joey Salceda, Rep Mika Suansing, Rep Ray Reyes, Rep Gilbert Violago, Rep Arnan Panaligan, Rep Marivic Co-Pilar, Rep Lorenz Defensor, Rep Wilbert Lee, Rep Nicanor Briones, and Rep Ria Vergara. Mr Manuel Aquino of the Socio-Economic Research Bureau of the Congressional Policy, Budget, and Research Department (CPBRD) served as moderator.

Government Revenues and Expenditures in Inflationary Environment

The afternoon session focused on fiscal management with the theme, “Government Revenues and Expenditures in Inflationary Environment.” Dr Lawrence Dacuycuy of the De La Salle University and Congressional Research Fellow of the HRep-Ateneo Project,  presented insights into developing an estimable macroeconomic model of the Philippine economy that incorporates a complete fiscal block for policy evaluation.

Dr Dacuycuy noted that high inflation had become the country’s major challenge as it downgrades purchasing power, affects investment decisions, spawns uncertainty, and reduces output, which leads to lower consumption, lack of employment, reduced capital, and even higher foreign debt. The need for a fiscal-centric macroeconomic model was also underscored in order to understand the complex issues in a post-pandemic world.

The impact of taxes on passive income was likewise covered with Dr Renato Reside, Jr of the University of the Philippines Diliman and Congressional Research Fellow of the HRep-Ateneo Project leading the discussion.  In his presentation, Dr Reside explained how inflation interacts with the financial system, reinforcing the effects of capital and other taxes. He also discussed the challenges aimed to be addressed by the Package 4/PIFITA, particularly such questions as how to increase tax revenues in an inflammatory environment and how to tax saving instruments while minimizing distortions to savings decisions and financial intermediation. Together with the possible effects of PIFITA, Dr Reside suggested the following measures to stimulate real economic growth: conduct a closer study of the potential impacts of Package 4 on macroeconomics variables and other areas such as tax administration; assess how the structure of the economy might affect the efficacy of tax reform; and explore ways in improving the structures of tax rates to improve financial markets, savings, access to reasonably-priced credit and financial services. 

The afternoon discussion was made even more dynamic with the insights provided by the panel of reactors composed of financial specialists including Hon Joey Sarte Salceda of the House Committee on Ways and Means; Undersecretary Zeno Ronald Abenoja and Ms Ma. Jesusa Bato of the Department of Finance; Ms Marlene Lucero-Calubag of the National Tax Research Center; and Mr Emilio Neri, Jr of Bank of the Philippine Islands. 

Rep Quimbo wrapped-up the discussion noting careful planning is necessary to achieve long-term growth. 

Also in attendance were Rep Christopher de Venecia, Rep Ambrosio Cruz, and Rep Ria Vegara who joined the afternoon session virtually.  Ms Pamela Manalo of the Budget Policy and Research Service of the CPBRD moderated the session.

The Roundtable Discussion is a regular activity under the HRep-Ateneo Project and is envisioned to be a platform for discourse on critical national issues. 

Watch and listen to the discussions via the House of Representatives of the Philippines Facebook page:

Food Prices

Fiscal Management