Duterte admin still addressing P12-T debt: Palace

The national government’s outstanding debt rose to a new high of PHP12.68 trillion in March. (Pexels photo)

MANILA – The outgoing Duterte administration is still looking for ways to address the country’s PHP12-trillion debt, Malacañang said Thursday.

“Reducing the country’s debt remains a priority,” acting Presidential Spokesperson and Communications Secretary Martin Andanar said in a press statement.

President Rodrigo Duterte’s economic team, Andanar said, has proposed a fiscal consolidation and resource mobilization plan to pay off the country’s huge debt.

Andanar said the proposal contains “fair, efficient, and corrective tax measures.”

“These include the expansion of value added tax (VAT) base by removing ineffective VAT exemptions except for some sectors, among others, to generate revenues,” he said.

Andanar, however, acknowledged that the outgoing economic managers’ recommendations are “subject to the consideration of the next Administration.”

The national government’s outstanding debt rose to a new high of PHP12.68 trillion in March.

For the next 10 years, the next administration needs to raise incremental revenues of up to PHP249 billion a year to avoid accumulating new debts to pay for maturing debts, according to the Bureau of Treasury’s estimates.

Under the Duterte administration’s proposed fiscal and resource mobilization consolidation program, new taxes will be imposed in the next three years while some existing tax exemptions will be removed to improve government revenues.

The proposal is expected to yield an average of roughly PHP284 billion every year for the national government.

Outgoing Finance Secretary Carlos Dominguez III said the proposed plan would help allow the government to “continue to spend on socioeconomic programs, maintain our credit ratings, and grow out of our debt.”

Dominguez added that the outgoing economic team’s recommendations are “doable” and “designed to secure the gains” made under the Duterte administration.