The Philippine government has enough revenues to service its debt even without the proposed ProGRESS tax package, Malacañang said Monday, as the Marcos administration pushes reforms to strengthen fiscal capacity and provide targeted tax relief.
Presidential Communications Office Undersecretary and Palace Press Officer Claire Castro said the government’s debt remains manageable, with borrowings structured over long repayment periods that spread principal and interest payments over time.
“Sapat po sa kasalukuyan ang revenues o kita ng gobyerno para matugunan ang obligasyon natin sa utang sa tamang panahon,” Castro said.
Her remarks come as the administration backs the Promoting Growth, Revenue, and Equity towards Socio-Economic Sustainability (ProGRESS) Bill, which seeks to combine tax relief with measures to raise additional government revenues.
Castro said the package should not be seen simply as a response to rising public debt, but as part of a wider effort to strengthen the tax system and fiscal position.
“Hindi lang ito. Ang lahat ng ginagawa ngayon na mga reporma sa tax ay maaaring makatulong at makapag-manage ng ating public debt,” she said.
The proposed measures include income-tax relief aimed at raising workers’ disposable income and supporting consumption, while expanding economic activity could also generate additional tax collections.
The government is also considering higher taxes on distilled spirits and electronic cigarettes, new levies on vape devices and novel tobacco products, and changes to taxes on plastics and automobiles.
The Palace said the reforms are intended to broaden the government’s revenue base and create more fiscal space for development spending while ensuring debt obligations remain manageable.
The push comes as the government seeks to balance debt management with spending demands on infrastructure, social services, and other development priorities.
