DEPARTMENT of Budget and Management (DBM) Secretary Amenah F. Pangandaman said that pending revenue measures and procurement reform promise to bring the National Government’s (NG) debt-to-gross domestic product (GDP) ratio to levels deemed suitable for developing countries.
“Procurement reforms will also help because we’ll make our spending more efficient. And we’ll make sure that it helps the budget,” she told reporters last week.
The Bureau of the Treasury estimated that the debt-to-GDP ratio rose to 60.7% at the end of 2024 from 60.1% a year earlier.
A ratio of 60% is considered by development banks to be manageable for economies like the Philippines.
Ms. Pangandaman also added the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act will help improve the investment climate.
CREATE MORE expanded tax incentives and streamlined value-added tax processes to make the Philippines more attractive to foreign investors.
The Legislative-Executive Development Advisory Council’s (LEDAC) priority bills include an excise tax on single-use plastics, the rationalization of the mining fiscal regime, amendments to the Electric Power Industry Reform Act.
“The revenue measures (of Finance Secretary Ralph G. Recto) are already with the Senate. The right-of-way bill, also I think, is in the advanced stages,” she said, referring to reforms intended to make right-of-way acquisition more efficient and expedite the completion of government projects.
Asked if the pending revenue measures will be passed this year, Ms. Pangandaman said: “Yes, I think the Senate committed to Secretary Recto.”
Other non-LEDAC priority bills pending in the Senate are the excise taxes on pre-mixed alcoholic beverages, sweetened beverages, and junk food.
The Senate is adjourned until June 2 to make way for the midterm elections in May. — Aubrey Rose A. Inosante