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Manila: A House leader on Monday cited the government’s fiscal strategies to keep the country’s debt manageable, reduce poverty incidence and improve tax collection efficiency.
During the plenary debates on the proposed PHP6.352 trillion 2025 national budget, House Appropriations Committee senior vice chair and Marikina City 2nd District Rep. Stella Quimbo allayed concerns over the rising national debt, which stands at PHP15.69 trillion, noting that the government is on track to reduce its debt-to-gross domestic product (GDP) ratio from the current 60.9 percent to 56.3 percent by 2028.
She explained that the key to managing debt is ensuring borrowed funds are used productively to improve economic growth.
“Habang pinapalaki natin ang ating GDP… ay napapababa natin ang debt-to-GDP [ratio] over time (As we increase our GDP… we also decrease our debt-to-GDP [ratio] over time),” she said.
She said the government projects a deficit of PHP1.537 trillion for 2025, with gross borrowings amounting to PHP2.545 trill
ion, which will help finance the proposed spending plan for next year.
In terms of improving the revenue collection of the government, Quimbo highlighted the passage of Republic Act 11976 or the Ease of Paying Taxes Act, which aims to modernize and increase the efficiency and effectiveness of tax administration and strengthen taxpayer rights.
“Ito naman po ay nag-modernize ng ating tax administration at nag-improve ng ating collection efficiency. So ang ginawa po nito ay na-simplify ang ilang mga tax processes at nakapag-provide ng mga facility nang sa ganoon ay mapadali ang pagbayad ng buwis ng ating mga kababayan (This modernized our tax administration and improved our collection efficiency. So what we did here is we simplified some tax processes and we provided facilities in order to make the paying of taxes much easier for Filipinos), particularly through electronic channels,” Quimbo said.
Quimbo also pointed out the government’s success in lowering the poverty incidence — from 18.1 percent in 2021 to
15.5 percent in 2023 — due to the rise in employment.
It was reported that the unemployment rate in June 2024 fell to 3.1 percent, which is the lowest in two decades.
The country’s employment rate, meanwhile, rose to 96.9 percent in June 2024 from 95.5 percent in June 2023 and 95.9 percent in May this year.
“Thanks to better employment figures, we’ve seen a consistent decrease in poverty,” Quimbo said.
Appropriations Committee chair Elizaldy Co said the proposed budget ensures the funding of public programs and projects, with key focus areas in human and social development, job creation and improving infrastructure and governance.
Source: Philippines News agency
