Ex-DOF execs: Finance chief’s success tied to president’s support

The Secretary of Finance (SOF) needs to build a strong relationship with the president, make decisions based on what is best for the country, and be skilled at negotiating and working with lawmakers.

Former officials from the Department of Finance (DOF) said that having the trust and support of the president is crucial for the job. Without it, he cannot make important reforms.

“In that role, the level of trust and support you receive from the president is crucial; you’re ineffective if you lack the trust and support of the president,” a former DOF official declared.

It is also important for the SOF to speak in a way that matches the president’s views, thus clear and strong communication is vital.

“When you speak, your words should reflect the views of the President. If you’re not sure, it can be quite challenging,” the former executive stated.

While there is not just one way to be a qualified SOF, another former DOF official pointed that that it is important for the finance chief to understand how the government works and how to get things done.

The appointment of the SOF is much anticipated in every administration, as it involves both financial stewardship and crucial advisory duties on economic and business affairs for the president.

However, assuming the role of DOF chief is not seen as an advantageous position for people with ambitions of pursuing elected positions.

“The DOF is not perceived as a favorable pathway for political aspirations, as no former DOF secretary has successfully become a senator,” the official said. “There has been only one unsuccessful attempt.”

According to them, the finance department requires its secretary to base decisions on the needs of the country, rather than on political considerations.

In every administration, the DOF secretary often bears the responsibility of making difficult decisions, such as implementing unpopular measures like raising taxes, which are crucial when the government requires additional money.

At this point, one of them emphasized the need for the SOF to demonstrate a solid grasp of politics, as well as the ability to negotiate and pass laws that contribute to revenue generation.

“In our country, hammering out deals with lawmakers is always a tricky business, especially when the goal is to boost revenue instead of cutting taxes,” the former official shared.

Apart from working with politicians, the SOF will also need to engage with business interests.

The former DOF executive stated that this will require a careful balance and a deep understanding of industry specifics to ensure a fair policy that increases revenues and compliance with tax regulations.

“He’s got to know what’s needed and which moves to make to get his reform passed, while making sure it stays effective and doesn’t get lost in the shuffle,” the official added.

When it comes to enforcement, one former DOF official highlighted that the finance secretary needs to earn the respect of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC), the largest revenue-generating agencies.

“It doesn’t matter who is running the show at the BIR and BOC, as long as they’re willing to listen to you. If they don’t, it’s a struggle because you’re constantly wrestling with the budget deficit,” the official said.

The official further stressed the importance of maintaining a strong working relationship with the Department of Budget and Management (DBM), emphasizing that the role of the DOF is not solely focused on revenue generation.

“You also need to manage expenditures, so you must have coordination [with the DBM] so that you can manage your budget deficit periodically,” the official said.

For this reason, the DOF chief should be the leader of the president’s economic team because his department is involved in over 70 government bodies and has a team of experienced staff, the former official suggested.

For the other former DOF official, “the finance secretary must realize that his role is about more than just finance and economics. He also needs to consider how his policies will impact society and politics.”

— Chino S. Leyco