PHILIPPINE STAR/ MICHAEL VARCASGovernor Benjamin E. Diokno on Thursday said he will prioritize debt management when he assumes his new post as Finance secretary in July.
The National Government’s debt stood at a record P12.68 trillion as of end-March, equivalent to 63.5% of gross domestic product . The debt-to-GDP ratio exceeds the 60% threshold considered manageable by multilateral lenders for developing economies. Also, Mr. Diokno said they will look at the fiscal consolidation plan proposed by outgoing Finance Secretary Carlos G. Dominguez III.
The Department of Finance proposed three tax reform packages that it described as “fair, efficient and corrective,” which will be implemented from 2023 to 2025. This includes imposition of new taxes on digital services, luxury goods and single-use plastic; deferment of personal income tax reductions for three years; and a repeal of some tax exemptions.