ADB loan to help Philippines boost revenue mobilisation

Illustrative image (Photo: https://www.philstar.com/)

Hanoi (VNA) – The Asian Development Bank (ADB) has approved a 400-million-USD loan to help the Philippines achieve its medium-term fiscal strategy and finance its post-pandemic economic recovery through a stronger focus on revenue mobilisation.

The bank said the programme is its first policy-based loan dedicated to domestic resource mobilisation (DRM) reform.

According to the ADB, the loan will help address the Southeast Asian country's need to tackle discrepancies in tax policy frameworks to boost tax compliance, reduce tax avoidance, and raise more revenues from activities and products that significantly impact the environment or contribute to climate change.

ADB Senior Economist for Public Finance Aekapol Chongvilaivan said the DRM programme will result in a higher tax-to-GDP ratio and ensure sustainable financing for the country as it sets out to achieve its goals under the Philippine Development Plan 2023-2028./.

VNA