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 PROFILE / TIMELINE
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| I. THE SPANISH ERA: A TASTE OF INDEPENDENCE |
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FINANCE SECRETARIES
Baldomero Aguinaldo
April 1897 to November 1897
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Mariano Trias
July 15, 1898 to May 9, 1899 (Mabini Cabinet)
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Hugo Ilagan
May 9, 1899 (Paterno Cabinet)
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| 1897 |
The Department of Finance was established at the same time that the Revolutionary Government was founded in Naic, Cavite; General Baldomero Aguinaldo was appointed Director of Finance by General Emilio Aguinaldo. The Finance Director became the Secretary of the Treasury under the first constitutional republican government--the Biak-na-Bato Republic. |
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| II. UNDER THE AMERICAN FLAG: LEARNING FROM THE COLONIZERS |
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FINANCE SECRETARIES
Henry Clay Ide
September 1, 1901 to September 24, 1906
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James Francis Smith
September 25, 1906 to June 30, 1908
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Gregorio Araneta
July 1, 1908 to October 30, 1913
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Victorino Mapa
November 1, 1913 to January 14, 1917
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Alberto Barreto
January 14, 1917 to July 17, 1923
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Miguel Unson
July 18, 1928 to December 13, 1931
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Vicente Carmona
January 1, 1932 to December 31, 1932
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Rafael Alunan
July 1, 1933 to April 30, 1933
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Vicente Encarnacion
April 23, 1933 to July 24, 1934
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| 1901 |
The Department of Finance and Justice was formally organized by virtue of an act passed by the Civil Service Commision headed by William Howard Taft. Gregorio Araneta was the first Filipino appointed Secretary of Justice and Finance |
| 1916 |
The Philippine Legislature passed Reorganization Act No. 2666, which divided the Department of Finance and Justice into two independent departments. |
| 1917 |
The Philippine government established a formal budget system, six years before the federal government of the United States had its own. |
| 1919 |
The Philippine Legislature passed Act No. 2833 otherwise known as "The Philippine Income Tax Law". |
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| III. UNDER THE AMERICAN FLAG: THE COMMONWEALTH YEARS |
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FINANCE SECRETARIES
Elpidio Quirino
July 25, 1934 to February 18, 1936 • May 28, 1946 to November 24, 1946
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Antonio de Las Alas
February 19, 1936 to November 15, 1938
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Manuel Roxas
November 26, 1938 to August 28, 1941
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Serafin Marabut
August 21, 1941 to December 29, 1941
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Jose Abad Santos
1941 - 1942
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| 1936 |
The DOF functions relative to the formulation and preparation of the National Goverment budget were transferred to the newly-created Budget Commission. The preparation of income and resource estimates remained with the Department. |
| 1939 |
The National Internal Revenue Code was enacted through Commonwealth Act No. 466. |
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| IV. THE SECOND WORLD WAR: THE JAPANESE OCCUPATION |
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FINANCE SECRETARIES
Andres Soriano
March 26, 1942 to July 31, 1944
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| 1942 |
The Japanese authorities imposed various sales and luxury taxes and printed Japanese war notes to finance government operations interrupted by war. |
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| V. THE POST-WAR YEARS: A GOVERNMENT BY FILIPINOS PART I |
FINANCE SECRETARIES
Miguel Cuaderno
November 25, 1946 to January 2, 1949
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| 1949 |
Creation of the Central Bank, DOF Secretary Miguel Cuaderno relinguished the Finance portfolio to Pio Pedrosa to serve as first CB Governor. |
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| VI. THE POST-WAR YEARS: A GOVERNMENT BY FILIPINOS PART II |
FINANCE SECRETARIES
Pio Pedrosa
January 5, 1949 to September 12, 1951
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Aurelio Montinola Sr.
January 1952 to December 1953
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| 1951 |
The passage of new tax measures under Secretary Aurelio Montinola helped achieved a balanced budget from 1952 to 1954. |
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| VII. THE POST-WAR YEARS: A GOVERNMENT BY FILIPINOS PART III |
FINANCE SECRETARIES
Jaime Hernandez
August 8, 1944 to May 27, 1946
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Dominador Aytona
January 25, 1960 to December 29, 1961
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Fernando Sison
January 2, 1962 to July 31, 1962
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Rodrigo Perez
August 1, 1962 to January 7, 1964
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Rufino Hechanova
January 8, 1964 to December 13, 1965
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Eduardo Romualdez
January 1, 1966 to February 4, 1970
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Cesar Virata
February 9, 1970 to March 3, 1986
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| 1957 |
The Government pursued an overall stabilization program to curb the growing government deficits, which resulted from massive spending on the three year economic development program that lasted from 1955 to 1958. |
| 1959 |
The DOF spearheaded the passage of the Tariff Act, improving revenue generation for government and protecting the growing industrial sector. |
| 1960 |
The National Government succeeded in stabilizing fiscal operations with the imposition of a margin levy of not more than 40% on the sale of foreign exchange. |
| 1970 |
The Department was transformed into a Ministry of Finance under a parliamentary form of government. Minister Cesar E.A. Virata, concurrently Prime Minister, continued to be at the helm of the Finance portfolio since assuming the post in 1970. |
| 1985 |
As government policy turned increasingly interventionist in the economy, the Ministry became the voice of caution. It spearheaded the creation of inter-agency committees to rationalize the otherwise free-for-all system of allocating government resources. The Investment Coordination Committee (ICC) was created to rationalize government investments, the Government Corporate Monitoring and Coordinating Committee (GCMCC) to reform the government corporate sector, and the Fiscal to reverse the prolifecation of the fiscal incentives. |
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| VIII. THE AGE OF FREEDOM : BUILDING A NEW PHILIPPINES PART I |
FINANCE SECRETARIES
Jaime V. Ongpin
March 26, 1986 to September 14, 1987
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Vicente Jayme
September 15, 1987 to December 1989
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Jesus Estanislao
January 1, 1990 to June 30, 1992
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| 1986 |
The Department formulated and implemented a Tax Reform Program which included the introduction of the 35% single tax rate for corporations. |
| 1987 |
The Ministry of Finance was reverted to a Department following the ratification of the 1987 Constitution which provided for a presidential form of government. Accordingly, the Department was reorganized and its organizational structure, distribution of powers and functions and coordination mechanisms streamlined. |
| 1988 |
The Value Added Tax was introduced and replaced a complicated sales tax structure. |
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| IX. THE AGE OF FREEDOM : BUILDING A NEW PHILIPPINES PART II |
FINANCE SECRETARIES
Ramon del Rosario
July 1, 1992 to June 1, 1993
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Roberto de Ocampo
February 1, 1994 to March 30, 1998
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Salvador Enriquez
April 1. 1998 to June 30 1998
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Ernest C. Leung
June 2, 1993 to January 31, 1994
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| 1993 |
The Macroeconomic environment vastly improved after the Economic Stabilization Program of 1991 and 1992. For this feat, the Philippines returned to the international voluntary markets after more than a decade of absence. The DOF spearheaded the re-entry with a $150 million Eurobond issue. |
| 1994 |
Through better resource allocation and cash management by the DOF, the National Government posted a budget surplus of P16.3 billion, the first in twenty years. |
| 1995 |
The National Government sustained its strong fiscal position, posting a second consecutive budget surplus. Fiscal stability helped contain inflation at a single-digit, notwithstanding the rice crisis that hit the country during the second semester.
Secretary Roberto de Ocampo was voted "Finance Minister of the Year" by the prestigious Euromoney magazine "for presiding over the least expected recovery of an Asian economy". He was likewise chosen "Man of the Year" by the Philippine Graphic magazine for his substantial role in bringing the Philippine economy to greater heights |
| 1996 |
The Philippines was hailed as "Asia's Newest Tiger" by various international credit institutions for its sound fiscal and monetary conditions.
The National Government recorded a budget surplus for the third consecutive year and the public sector generated its fiscal suplus since the sector started to be monitored in 1985.
Two of the components of the Comprehensive Tax Reform Program restructuring tax on the downstream oil industry and the shift from ad valorem to specific tax on "sin" products were enacted into law.
The Philippines made a successful re-entry to the Samurai Bond Market after 15 years of absence.
The DOF spearheaded the successful conclusion of Brady Exchange Program eventually earning for the Philippines the award of "International Borrower of the Year" by the prestigious International Finance Review. |
| 1997 |
The National Government was able to post its fourth consecutive budgetary surplus despite the currency turmoil that plagued East Asia.
The individual and corporate income tax component of the Comprehensive Tax Reform Program was finally enacted into law after months of fierce Congressional debates. |
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| X. THE AGE OF FREEDOM : GOVERNMENT FOR THE MASSES |
FINANCE SECRETARIES
Edgardo B. Espiritu
July 1, 1998 to December 31, 1999
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Jose T.Pardo
January 2, 2000 to January 20, 2001
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| 1998 |
Adverse external conditions arising from the Asian financial crisis prompted the DOF to adopt an expansionary fiscal stance (pump priming) in order to stimulate the economy. As a result, the Philippines emerged as the only economy in ASEAN (ex-Singapore), which posted a positive economic growth.
The Municipal Development Fund Office was created through Executive Order No. 41 to strengthen financing support for development projects of poor local government units (LGUs).
The DOF launched the Small Investor Program (SIP) to make government securities more widely available to small savers.
1999 (Espiritu)
The DOF maintained its pump-priming stance, hastening economic recovery while maintaining low inflation and interest rates. Gross National Product reached 3.7 percent, higher than the private sector forecast of 1.4-2.2 percent.
The DOF aggressively tapped the international capital market to finance vital infrastructure projects. The bond issuances were highly praised for their successful execution, impeccable timing and successful distribution.
RA No. 9135 was enacted shifting the basis of the country’s import valuation from export value to transaction value starting January 1, 2000.
The DOF, as chair of the National Credit Council, spearheaded the signing of Executive Order No. 138, adopting market oriented principles in government’s credit policy, and veering away from directed credit programs.
The DOF hosted the Special ASEAN Finance Ministers Meeting (SAFMM) at the historic Manila Hotel. |
| 2000 |
The DOF doubled its financing program to pre-fund the government’s expenditure requirements.
The DOF issued the 25-year Fixed Rate Treasury Bond, setting a new benchmark for Philippine debt instruments. The bond issuance has the distinction of having the longest maturity in the domestic capital market in Asia, except Japan.
The Motor Vehicle User’s Charge Act (RA No. 8794) was enacted to raise revenues to finance the adequate maintenance of national and provincial roads.
The DOF spearheaded the passage into law of the Revised Securities Act (RA No. 8799), promoting domestic capital market development.
The Philippines hosted for the first time the annual Consultative Group (CG) Meeting, an annual gathering of international fund donors.
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| XI. THE AGE OF THE FREEDOM : THE PEOPLE POWER II |
FINANCE SECRETARIES
Alberto G. Romulo
January 23, 2001 to June 30,2001
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Jose Isidro N. Camacho
June 30, 2001 to November 30, 2003
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Juanita D. Amatong
December 1, 2003 to Feb. 14, 2005
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Cesar V.Purisima
Feb. 15, 2005 to July 15, 2005
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Margarito B. Teves
July 22, 2005 to present
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| 2001 |
The National Government managed to contain the budget deficit at P147 billion, from an estimated high of P225 billion, without reining in the budget for priority areas.
The DOF implemented wide-ranging reforms at the Bureau of Internal Revenue (BIR) and the Bureau of Custom (BOC) such as the establishment of Large Taxpayers Unit, computerization, and enhanced audit.
The National Government successfully contained adverse bond market reaction to the September 11 incident and the Argentine default, allowing ROP bond issuances to perform within the expected range relative to its emerging market peers. |
| 2002 |
The fiscal consolidation thrust was derailed by a series of economic shocks, prompting the DOF to push for more administrative measures and legislative reforms to enhance revenues.
The Government successfully hosted and chaired the Consultative Group Meeting for the second time in the Philippines.
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| 2003 |
The National Government succeeded in reducing the budget deficit to 4.6 percent, from 5.2 percent in 2002, boosting the objective to achieve fiscal consolidation in the medium-term.
The DOF secured the passage of the bill Restructuring the Excise Tax on Automobiles.
The Philippines hosted and chaired the 7th ASEAN Finance Ministers Meeting and the ASEAN +3 (China, Japan and Korea) Finance Ministers Meeting.
The National Government’s sovereign issues received various international recognition from prestigious financial magazines for the government’s ability to come up with cost-efficient, innovative, sizeable and well-structured deals amid challenging economic conditions. These include:
-Most Impressive Asian Borrower Award from Euroweek
-Best Sovereign Bond from Asia Money Magazine
-Best Asian Sovereign Bond from Asset Magazine
-Best Asian Sovereign from Euroweek
-Best Sovereign Bond from Euromoney
-Domestic Bond Deal of the Year and Philippine Capital Markets
-Transaction of the Year Award from the International Finance Review Magazine’s IFR Asia Awards
-Best Deal for the Philippines Award from Finance Asia Magazine
-Best Philippine Peso Bond Award from Euroweek |
| 2004 |
The National Government remained focused in its fiscal consolidation program with the fiscal deficit reaching just P56.8 billion below the first quarter deficit target of P58.9 billion.
The measure exempting several services from the coverage of the VAT and re-imposing Gross Receipts Tax on Banks and Non Bank Financial Intermediaries lapsed into law (RA No. 9238) without the signature of the President in accordance with Article VI of the Constitution.
The Rationalization of Documentary Stamp Tax bill was enacted as Republic Act No. 9243 to support the development of the domestic capital market.
The Japan Credit Rating Agency (JCRA) maintained its credit rating of “BBB” for the Philippines’ long-term foreign currency and domestic currency long-term senior debts for the government’s ability to manage its deficit and macro fundamentals. The rating is two notches higher than those of non-Asian rating agencies such as Moody’s, Standard and Poors, and Fitch.
The DOF secured the passage in Congress of the Clarification of the Tax Exempt Status of Offshore Banking Units. The measure is awaiting the approval of the President.
The DOF supported the passage of the Securitization Act (RA No. 9267) to create a market environment for the establishment of a wide range of asset-backed securities in the country.
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