MANILA – Malacañang assured the public that the government has sufficient capacity to meet the country’s debt obligations, noting that most of its outstanding borrowings have long-term repayment periods.

Presidential Communications Office Undersecretary and Palace Press Officer Claire Castro said the government’s current revenues are sufficient to meet its debt obligations as they fall due.

“Sapat po sa kasalukuyan ang revenues o kita ng gobyerno para matugunan ang obligasyon natin sa utang sa tamang panahon,” Castro said during a Palace briefing.

She explained that the government does not have to immediately settle a large portion of its outstanding debt because most borrowings are subject to long-term repayment terms.

“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,” she added.

Castro said the administration is pursuing tax reforms to strengthen government revenues and improve the management of public debt.

One of the measures is the proposed Promoting Growth, Revenue, and Equity towards Socio-Economic Sustainability (ProGRESS) Bill.

The Department of Budget and Management said the measure seeks to provide meaningful tax relief while strengthening the government’s revenue capacity to fund essential public services and long-term national development programs.

Castro, however, clarified that the ProGRESS Bill is only one component of the administration’s broader tax reform program.

Other measures being considered include higher excise taxes on distilled spirits, taxes on electronic cigarettes, new levies on vape devices and novel tobacco products, as well as higher taxes on plastic products and vehicles.

Castro said lowering income taxes for ordinary workers and small businesses could also give taxpayers more disposable income, potentially boosting consumer spending and economic activity.

As money circulates more actively through the economy, she said this could also generate additional revenues for the government.

These tax reforms, Castro said, are among the measures that could help the government manage its existing debt while sustaining economic activity.

She also emphasized that a significant portion of the country’s current public debt was inherited from previous administrations.

For further details on the country’s public debt situation, Castro said the Department of Finance is the appropriate agency to provide an official explanation.

Despite the proposed reforms, Castro maintained that the government currently has sufficient capacity to meet its debt obligations.