Malacañang on Monday assured the public that the government remains fully capable of meeting its sovereign debt obligations as the Marcos administration continues pushing for comprehensive tax reforms to boost revenue generation.
Speaking at a press briefing, Palace Press Officer Claire Castro emphasized that current government collections are sufficient to service the national debt, which stood at P19.39 trillion as of end-July, noting that much of the debt load was inherited from previous administrations.
“Sapat po sa kasalukuyan ang revenues o kita ng gobyerno para matugunan ang obligasyon natin sa utang sa tamang panahon” (The government’s current revenues are sufficient to meet our debt obligations on time), Castro said.
She explained that the bulk of government borrowings features long-term maturity profiles, relieving immediate fiscal pressure and allowing the state to settle principal and interest payments gradually over time.
To reinforce fiscal sustainability, the administration is prioritizing legislative measures such as the proposed Promoting Growth, Revenue, and Equity towards Socio-Economic Sustainability (ProGRESS) bill. The measure aims to offer targeted tax relief while expanding revenue capacity to fund critical infrastructure and socio-economic programs.
Castro highlighted that the ProGRESS bill forms part of a broader strategy to maintain debt sustainability.
“Hindi lang ito. Ang lahat ng ginagawa ngayon na mga reporma sa tax ay maaaring makatulong at makapag-manage ng ating public debt” (Not just the ProGRESS Bill. All the tax reforms currently being implemented could help manage our public debt), she added.
Beyond the ProGRESS bill, the executive branch is advancing additional fiscal measures, including higher excise taxes on distilled spirits, electronic cigarettes, single-use plastics and automobiles, as well as new levies on vape devices and novel tobacco products to expand the government’s tax base.