The government’s borrowings under the administration of President Ferdinand R. Marcos Jr. are strategically allocated to critical sectors, including infrastructure, education, agriculture, health, and social services, all of which are vital for robust economic growth.
Presidential Communications Office Undersecretary and Palace Press Officer Claire Castro affirmed that these “growth-enhancing investments,” totaling PhP4 trillion under the current administration, are verifiable and yielding tangible benefits for the Filipino people.
“These funds have been utilized for growth-enhancing investments such as infrastructure, education, agriculture, health, and social services,” Undersecretary Castro stated during a recent press briefing. “We can see the assistance provided by the President and the government to our farmers and fisherfolk, as well as the increase in aid and support for our countrymen – you can see all of that.”
Quoting the Department of Finance (DOF), Castro emphasized the sustainability of the nation’s current 62 percent debt-to-gross domestic product (GDP) ratio, well within the international threshold of 70 percent. The debt-to-GDP ratio serves as a key indicator of a country’s ability to manage and repay its public debt. “We are at a sustainable level because the international threshold for the debt-to-GDP ratio is 70 percent… We are still within that range; it’s supposed to be below 70 percent,” Castro explained.
According to the Bureau of the Treasury (BTr), the national government’s outstanding debt stood at PhP16.92 trillion as of May, a minimal and manageable increase from PhP16.75 trillion at the end of April. The DOF also noted that the Marcos administration inherited a substantial PhP12.79-trillion debt when it assumed office in 2022, with the previous administration incurring PhP6.84 trillion in debt primarily due to the pandemic, surpassing the combined borrowings of all previous administrations since the term of former President Ferdinand E. Marcos.
The administration remains committed to prudent fiscal management while ensuring that government borrowings translate into impactful projects that drive national development and improve the lives of Filipinos.
