Donald J. Trump began his second term as the 47th President of the USA on January 20, 2025, bringing with him a renewed focus on government efficiency. Historical data shows that economic performance under Trump from 2017 to 2019 yielded better GDP growth compared to the Obama administration (2014-2016) and the Biden administration (2022-2024). Inflation rates were notably higher during Biden's term, which has raised questions about the effectiveness of current economic policies [87611629].
In light of these developments, several countries are adopting a 'shrink government' approach to improve economic performance. For instance, Argentina's President Javier Milei successfully reduced the number of government ministries from 19 to 8, resulting in a budget surplus. Similarly, Vietnam plans to cut its government bodies from 30 to 21 [87611629].
In the U.S., Trump announced the creation of the Department of Government Efficiency (DOGE), which will be led by prominent figures such as Elon Musk and Vivek Ramaswamy. This initiative aims to streamline government operations and reduce bureaucratic inefficiencies [87611629].
In the Philippines, there is a parallel movement with the National Government Rightsizing Program (NGRP) bill currently under consideration in Congress. Finance Secretary Ralph G. Recto has assured that there will be no tax hikes associated with this initiative, which aims to enhance government efficiency while maintaining fiscal responsibility [87611629].
Additionally, a tobacco tax moratorium bill has been filed in response to a survey by the Food and Nutrition Research Institute (FNRI) indicating an increase in smoking incidence from 18.5% in 2021 to 23.2% in 2023. The rise in tobacco taxes has led to increased illegal sales, ultimately reducing tax revenues, highlighting the complexities of taxation policies [87611629].
As the Philippines navigates these changes, the potential for economic growth through government efficiency initiatives could align with global trends, providing opportunities for the nation to enhance its economic landscape amidst shifting political climates [87611629].