Duterte admin proposes plan to reduce gov't debt: Andanar
The outgoing administration of President Rodrigo Duterte has proposed a plan to reduce government debt, which rose to P12.68 trillion in April, P83.40 billion higher from March.
In a statement Thursday, acting Presidential Spokesperson Martin Andanar said: '' the Duterte Administration’s Economic Team has proposed a fiscal consolidation and resource mobilization plan, containing fair, efficient, and corrective tax measures.''
''These include the expansion of value-added tax base by removing ineffective VAT exemptions except for some sectors, among others, to generate revenues, ''added Andanar.
''These are, however, subject to the consideration of the next Administration,'' he added.
The Bureau of Treasury, in a statement, said the national government's total debt increased due to net issuance of government securities to local and external lenders and depreciation of the local currency against the US dollar.
The Department of Finance (DOF) said last week the next administration must raise P249 billion in revenues so it could pay government debts.
At the virtual ''Laging Handa'' public briefing, Department of Budget and Management Officer-in-Charge Tina Rose Marie Canda there are two options available to the next administration.
'' (Outgoing Finance) Secretary Dominguez is saying there should be tax increases by the next administrastion. But incoming (Budget) Secretary (Benjamin) Diokno said not to increase taxes but improve collection or efficiency of tax administration,'' said Canda.
Canda said the second option is to reopen the economy. ''If there are many people earning salaries or with jobs, it means government will have more revenues since they will be spending more.''
"So we should not be afraid (of our debt). Our economic managers assured the loans the took were reasonable, which we can manage in the future," Canda said. DMS
