President Gloria Macapagal-Arroyo yesterday expressed confidence of a stronger Philippine economy in the coming months amid government's various and sometimes, aggressive approaches to financial reforms.

Arroyo addressed a huge crowd of national and international fiscal management players and local government officials, at the opening of the 1st International Conference on Local Government Financing held in Dumaguete City yesterday.

The two-day gathering, hosted by the German government through the German Technical Cooperation Agency and the provincial government of Negros Oriental, focuses on a new technology, I-Tax, designed to improve and enhance tax collection efficiency of local government units.

"This Integrated Taxation System is a huge contribution to our efforts to increase tax collection nationwide and in the province," Arroyo said in the Cebuano dialect during her keynote address.

She noted that the country's economic strength is largely attributed to the various financial reforms that include strong revenue measures, such as the passage of the value added tax, which she described as the "single biggest act that led to the surge in our economy."

"In one bold stroke, it (VAT passage) raised enormous amounts of new revenue. That act also sent an unmistakable signal that we are serious about moving the nation forward," Arroyo said.

The president said the country's efforts are paying off as seen in a strong peso, low inflation, a robust stock market, rapid inflows of foreign investment and the creation of over 6 million new jobs created in the last six years.

She also noted that the Philippines ' unemployment rate is the lowest in a generation, "and so is our poverty rate."

The chief executive also assured that the country can meet its targets this year in further lowering its budget deficit and increasing tax collections.

"Our budget deficit so far is significantly lower than the ceiling. We have demonstrated that we have the ability to keep our budget under control," the President said.

While admitting that the country faced some challenges in generating revenues from the Bureau of Internal Revenue and the Bureau of Customs earlier this year, the administration was able to take steps to address earlier revenue shortfalls.

These include the "aggressive pursuit of tax evasion and corruption cases that will yield additional revenues", Arroyo pointed out.

The President disclosed that as a result of these aggressive economic reform measures, revenue collections from July to September this year have exceeded the target for the period.

Arroyo emphasized that genuine progress stems from the countryside, as she encouraged local government units to push for more dynamic and cogent tax collection measures to increase local and national revenues.

She expressed confidence that the adoption and implementation of the I-Tax in the different local government units in the country would further boost the country's existing robust financial standing. *JG

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