Jesie and Michi

https://www.rappler.com/business/philippine-government-debt-june-2022/

(PPT)
Data from the Bureau of the Treasury revealed on Friday, August 5 that the Philippine government's
debt was P12.79 trillion at the end of June, the last month that former president Rodrigo Duterte was in
office.

(PPT)
The majority of Duterte's debt was accumulated during the COVID-19 pandemic in order to provide
financial assistance while maintaining high infrastructure spending.

EXPLANATION:
Bureau of the Treasury (BTr) data show that to prevent having to use borrowings to pay the country’s 
P3.2 trillion in incremental debt, the government needs to raise at least P249 billion every year in
incremental revenues for the next ten years. The measures proposed by the DOF are estimated to yield
an average of roughly P284 billion every year for the national government.

(PPT)
The majority of Carlos Dominguez III's suggestions for a fiscal consolidation plan, which seeks to raise an
average of P284 billion yearly, are being supported by Finance Secretary Benjamin Diokno.

(PPT)
The fiscal consolidation plan includes for the imposition of new taxes, mainly on digital payments, the
postponement of personal income tax deductions, and an expansion of the base for the value-added
tax.

EXPLANATION:
Marcos will take office with a tight budgetary environment, as President Rodrigo Duterte's
administration gained about P13 trillion in debt due to pandemic borrowings and weak revenue.
And according to the DOF, raising taxes and postponing scheduled exemptions are "our best option" and
are "designed to secure the gains" of the Duterte administration.