This Budget Brief starts with a discussion on the FY 2022-2028 Medium-Term Fiscal Framework and the Medium-Term Fiscal Program, with the latter establishing the fiscal consolidation strategy of the government. Revenue projections from 2022-2028 are juxtaposed with the 30-year actual revenue performance to give context to what the revenue targets mean historically. Medium-term revenue forecasts are also provided based on three alternative scenarios placed side by side with Development Budget Coordinating Committee (DBCC) revenue targets.
The Brief also discusses the following: 1) revenue performance in recent years; 2) contribution of the Comprehensive Tax Reform Program of the Duterte administration; 3) decomposition of sources of change in the tax-to-GDP ratio of major types of taxes; and 4) priority tax reform measures that will strengthen domestic resource mobilization. It emphasizes, among others, that government can build upon existing tax reform measures to support fiscal consolidation and that opportunities to further improve the tax system should be pursued as part of an effective resource mobilization strategy.