Philtrust Bank Chairman of the Board Hermogenes Esperon said President Marcos should have discussed during his fourth State of the Nation Address (SONA) his plans on the digital economy as boosting it could generate more income for the government and make up for the deficit it incurs in its annual revenue collection.

"Sa tingin ko dapat inemphasize (He should have emphasized it)," Esperon told Manila Bulletin.

However, he theorized that the government could still be in talks about the topic, and as such the President did not report anything about it.

Esperon, a former national security adviser, made the remark after President Marcos delivered his yearly address at the House of Representatives on Tuesday, July 29.

When Marcos delivered his SONA in 2022 and 2023, he mentioned the government's plans on tax management as well as the adjustment on the tax system on digitalization.

Although Esperon lauded the passing into law of the measue on the eased paying of taxes as well as the imposition of VAT on digital service providers (DSP)--which both stemmed from Marcos pronouncements in his previous SONAs--he said it would've been ideal had the President discussed the state of the digital economy in 2025.

Discussing his plans on it, particularly on the taxation of DSP, is important because it would shed light on how the government could make up for the deficit in its revenue collection in 2024.

The government's proposed budget for 2026 is P6.793 trillion. But its collected revenue was only P4.4 trillion, according to a January report from the Department of Finance (DOF).

"In other words, may deficit ka na. Saan mo kukunin yun? Uutangin nanaman natin di ba (you already have a deficit. Where will you get the addtional funds? You'll make a loan right?)" he said, as her emphasized that revenues from digital tax would even be bigger than those coming from the Bureau of Customs (BOC).

Revenue generated from BOC is only P900 billion, while revenue from tax collected on DSPs could reach more than P1 trillion, he said.

"Sa tingin ko dapat inemphasize, pero siguro sa tingin ko marami pa silang pag uusapan (I think he should have emphasized it. But I believe they are still talking about it)... I think they should do it as soon as possible, otherwise lalaki yung deficit natin (our deficit will grow even bigger)," he also said.