Malacañang assured the public on Monday, September 7, that current government revenues are fully sufficient to cover upcoming debt obligations even without the immediate passage of the proposed Promoting Growth, Revenue, and Equity towards Socio-Economic Sustainability (ProGRESS) Bill.
Speaking at a Palace briefing, Communications Undersecretary and Palace Press Officer Claire Castro emphasized that the country remains financially capable of managing its liabilities, noting that most public borrowings are structured under long-term payment schedules.
”Sapat po sa kasalukuyan ang revenues o kita ng gobyerno para matugunan ang obligasyon natin sa utang sa tamang panahon,” Castro said when asked if government earnings are enough to cover debt without the ProGRESS measure.
”Importante po dito ang 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,” Castro explained.
”Sa ngayon po ay sapat po ang ating kakayanan na magbayad ng ating mga nautang,” the Palace official stressed.
The Department of Finance (DOF) has already initiated nationwide stakeholder consultations on the ProGRESS Bill. The legislative proposal aims to increase the annual tax-exempt personal income threshold from ₱250,000 to ₱350,000 to relieve individual taxpayers, exempt micro and small businesses from the minimum corporate income tax, and introduce higher excise taxes on luxury vehicles valued over ₱8 million.
Addressing whether the reform package is crucial for tackling the nation’s total debt load, Castro highlighted how tax relief can stimulate economic activity and indirectly raise state revenues.
”Ang pag-lower ng income tax sa mga ordinaryong manggagawa at sa mga small businesses ito ay makakapagbigay pa ng tsansa na magamit ang matitipid nilang pera para sa kanilang pangangailangan at kapag umiikot ang pera nagkakaroon ng karagdagang paggalaw sa ekonomiya na maaaring magdulot pa nang mas mataas na revenue,” Castro said.
Additionally, Castro shared that the administration is exploring complementary revenue-generating initiatives, including increased excise taxes on distilled spirits, heightened levies on e-cigarettes, novel tobacco products, vapes, plastic products, and motor vehicles.
”So, ilan lamang po ito sa maaaring maging reporma para mas ma-manage po iyong public debt na mayroon po kasalukuyan ang pamahalaan na karamihan po dito ay namana pa sa mga nakaraang administrasyon,” Castro added.