Malacañang has assured the public that the Philippines remains capable of meeting its debt obligations, saying government revenues are currently enough to pay its loans as they fall due.
Presidential Communications Office Undersecretary and Palace Press Officer Claire Castro said most government borrowings have long repayment periods, giving the government enough time to settle both the principal and interest.
“Sapat po sa kasalukuyan ang revenues o kita ng gobyerno para matugunan ang obligasyon natin sa utang sa tamang panahon,” she said during a Palace briefing on Monday, Sept. 7.
Castro said the proposed Promoting Growth, Revenue, and Equity towards Socio-Economic Sustainability (ProGRESS) measure is only one of several tax reforms being pursued by the administration and is not the sole answer to the country’s rising debt.
“Hindi lang ito (the ProGRESS Bill). Ang lahat ng ginagawa ngayon na mga reporma sa tax ay maaaring makatulong at makapag-manage ng ating public debt,” she said.
Castro explained that the government does not have to immediately pay its entire outstanding debt because most of its borrowings are structured for long-term repayment.
“Majority ng ating mga nautang ay may long-term repayment. So, hindi naman po agad-agad babayaran ito, maaaring paunti-unti at para mabayaran din po ang interest at ang principal,” she said.
The Department of Budget and Management said the ProGRESS Bill aims to provide tax relief while improving the government’s ability to raise revenues for public services and development programs.
Castro also said lower income taxes for ordinary workers and small businesses could give taxpayers more money to spend, which could help boost economic activity and, in turn, government revenues.
“When money circulates, there is additional movement in the economy that could result in higher revenue,” she said.
Other tax proposals being considered include higher excise taxes on distilled spirits and electronic cigarettes, new levies on vape devices and novel tobacco products, and higher taxes on plastic products and automobiles.
Asked about the government’s debt situation, Castro said the Department of Finance should provide the details.
“Sa ngayon ay pinag-aaralan iyan. Hayaan natin na sumagot mismo ang DOF patungkol diyan,” she said.
She also noted that a large portion of the country’s outstanding debt was incurred by previous administrations.IMT
