Creative financial engineering puts Manila back on track – Isko

By Tracy Cabrera

Few cities have managed to engineer a financial turnaround as dramatic as Manila’s.

Once weighed down by a massive budget deficit that threatened its ability to deliver basic services, the country’s capital has bounced back, reclaiming its reputation as a financially stable and well-managed city.

Speaking at last week’s Kapihan ng Samahang Plaridel at the Rizal Park Hotel, Manila Mayor Francisco “Isko Moreno” Domagoso attributed the city’s recovery to what he described as “creative financial engineering” anchored on fiscal discipline, strategic tax reforms, and aggressive revenue generation.

According to Domagoso, his return as Manila’s chief executive was guided by an economic agenda designed to restore fiscal health without imposing additional burdens on taxpayers. Instead, his administration focused on lowering taxes on essential goods and utilities while strengthening the city’s revenue base through more efficient tax collection, public-private partnerships, and streamlined government processes.

At the heart of the strategy was a simple principle: stimulate economic activity while tightening fiscal management.

One of his earliest proposals was to cut taxes on fuel and electricity by as much as 50 percent to provide immediate relief to consumers. While such a move could reduce government income in the short term, Domagoso argued that the losses would be offset by plugging revenue leakages and improving tax collection efficiency.

His administration also prioritized support for businesses, particularly micro, small and medium enterprises, by simplifying permit applications, reducing bureaucratic red tape, and encouraging investments that would generate jobs and economic activity.

Fiscal restructuring became another key pillar of the recovery program. Through tighter spending controls, anti-corruption measures and modernized revenue collection systems, Manila was able to erase its budget deficit and redirect resources to priority programs, including housing, healthcare, and infrastructure development.

For Domagoso, however, financial recovery goes beyond balancing the books.

He believes that restoring public trust is equally vital to sustaining economic growth. By ensuring that taxes are translated into visible public services and social programs, the city government has strengthened confidence among residents and investors alike—a trust that, he says, has become one of Manila’s most valuable assets.